If my daughter's college tuition is greater than her scholarships received, why does her scholarship count as income?

[apmooreap]

I understand that room and board are not tax deductible, but what about the "required" things...books, etc?

[KrisD]

Are you getting an education credit?

[apmooreap]

No, we are not. I followed all of the directions and entered that her scholarship was not being used for room and board. However, it still said that the $ would be considered income.

[apmooreap]

Thank you. Perhaps I missed something. After reading this, I have decided to recheck my entries.

[DawnC0 · Accepted solution]

You need to go through the education screens and enter all of her expenses.  Once you have all the expenses (amounting to more than her scholarships) the taxable scholarship will go away and/or she will qualify for education credits.   You can type in - Education  - in the search bar and use the Jump to Education link to get to the section where you enter the expenses.  The tuition is usually on a 1098-T and there will be follow-up questions that will ask about 'Other Expenses'' where you can add books and 'required' things.  https://ttlc.intuit.com/replies/3301953