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Is there anywhere specific I should be looking to see if my scholarship income was not designated to pay some of my 2020 education expenses?

 
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2 Replies
ThomasM125
Expert Alumni

Is there anywhere specific I should be looking to see if my scholarship income was not designated to pay some of my 2020 education expenses?

You would look on your form 1098-T entry in TurboTax. You will see questions about how your scholarship income was spent. Use these menu tabs in TurboTax to find that section:

 

  1. Deductions and credit
  2. Education
  3. Expenses and Scholarships (Form 1098-T)
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Hal_Al
Level 15

Is there anywhere specific I should be looking to see if my scholarship income was not designated to pay some of my 2020 education expenses?

You get that from your own records. It's pretty much optional how the scholarship money is matched to designated expenses. 

If your scholarship is not restricted (the terms of the grant say it must be used for tuition), you get to decide how much of it was used for what.  If it was not itemized on the school invoices, the scholarship is, most likely, not restricted. 

 

You do that to "free up" QEE-Qualified educational expenses (tuition, fees and book expenses) to be claimed for the tuition credit and/or a 529 plan distribution.

 

Scholarships used for QEE are tax free. Scholarships used for room & board are taxable income. However, it is frequently better to pay a little tax (usually little or none) on the scholarship in order to claim the tuition credit.

 

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