I'm seeing the message Education Assistance counts as income and should be

[SJabo007]

I'm doing my Educational Deductions the way I do every year but this time I'm seeing a message I've never seen before "It Turns Out (insert child's name)'s Education Assistance Counts as Income".  How is this possible, her scholarship isn't more than her tuition?

[MarilynG1]

Make sure your 1098-T entry shows the Box 1 amount (Tuition) as larger than the Box 5 amount (Scholarships).  If not, the Excess Scholarship is Taxable Income and the 1098-T is entered on the Student's return (if they are required to file a return.

Type '1098t' in the Search area, then click on 'Jump to 1098t'.

At the Education Expenses Summary screen, EDIT your Student (screenshot).

On the next screen, 'Here's your Education Summary', Edit your School (screenshot).

Click this link for more info on How to Enter a 1098-T. 

[SJabo007]

Thanks for the quick reply.  Yes, I double checked the Tuition Statement in Turbo Tax (the 1098-T form) and there is an amount of $4,711 in section #1 and the amount in section #5 is $1,000.   So I'm not seeing how TurboTax is coming back with this being counted as income when the payment is larger than the scholarship?

Thanks, 

Scott

[Hal_Al]

Go through the entire education interview until you reach a screen titled "Your Education Expenses Summary".  Click edit next to the student's name. That should take you to a screen “Here’s your Education Summary”. Click edit next to the section you want to change; tuition, in your case (click edit next to the school name).

 Verify that you entered the box 1 and box 5 amounts correctly.

If that's not it, click the scholarship section and make  sure you didn't enter additional scholarships.  In particular, loan amount should ne be entered.

If all else fails, click delete next to the student name at the summary screen, and start over

[SJabo007]

Thanks.  I tried  your recommendations and it still isn't working.  I had 2 children in college and when i start over and try each of them individually or by them selves they both come up as showing their scholarships as Income.  Is it possible to get a code and have someone walk me through the screens to see if there isn't something else going on? 

Thanks, 

Scott

[Hal_Al]

To contact TurboTax (TT) support:
https://turbotax.intuit.com/support/contact/index.jsp 

In the search line enter some keywords or question without quotes. On the next page, skip the suggested topic links and scroll down until you see CALL US.  It should show the wait times.  

Live help is available 7 days per week from 5:00 a.m. to 9:00 p.m. PST. (Jan 11- Apr 21)