Where to enter taxable scholarship?

[nhttip]

I was applying room & board towards the scholarship amount (thus making a portion of the scholarship taxable) to compare how it affects the LLC.  I enter the amount of room & board but it doesn't look like it carries it forward to Schedule 1, line 8R.  Is this another bug in the college expense reporting?  Or is there a way for me to manually enter this amount?

[KrisD15]

Room and Board expense can offset the tax on a 529 Account / 1099-Q distribution, but Room and Board does not offset a scholarship. 

Only Tuition, Fees, Books and supplies can offset the tax on scholarships. 

Room and board would not change an education credit. 

[Hal_Al]

Q. Is there a way for me to manually enter this amount?

A. It depends on whether you are just trying to report taxable scholarship or also trying to claim the tuition credit, on the student's return, rather that he parent's separate tax return.  

If just trying to report taxable scholarship, on the student's return, enter the 1098-T with 0 in box 1 and the manually calculated taxable amount of scholarship in box 5.  

Otherwise, you are doing it the right way, allocate the taxable amount to room & board.  There was a glitch earlier, but it has supposedly been fixed.  Be sure you're  updated. 

[nhttip]

thanks, I'm using the web version, but it doesn't appear to carry the scholarship amount I enter for room & board over to taxable income automatically.  So I guess the work-around of entering it on the 1098-T is the only option for web version?

[ThomasM125]

I believe the web version of TurboTax does transfer your scholarship income used to pay for room and board to line 8(r) of schedule 1 to the extent it is taxable. I just set up a mock return to test this and it worked. If it is not working for you, you may need to review your education entries to make sure you haven't entered sufficient qualified education expenses to cancel out the scholarship income.

[Brittojohn]

• Please help to scholarship 

[Hal_Al · Accepted solution]

How to Enter taxable scholarship. 

Enter at Educational Expenses and Scholarships, under Deductions and credits (not the income section).

After answering no to having a 1098-T*, answer yes to qualifying for an exception (that gets you to the entry screens). You will have to go thru the whole education interview to get to the scholarship screen. At the scholarship screen, enter the amount of the grant. When asked if any was used for room and board, answer yes. Then enter the amount you want to be taxable (usually all of it), in the pop up box. R&B are not "qualified educational  expenses".  So, this is how you tell TT that it is taxable. Note the wording at that screen “or other expenses”. You didn’t have to literally use the scholarship for R&B.  This will put it on line 8r of Schedule 1 (this line was added in 2022).

*If you do have a 1098-T, one of the follow-up questions will be do you have any scholarships not shown on the 1098-T. Enter the additional scholarship/stipend there.