scholarships

[acep1111]

Turbo tax is treating my scholarship as taxable income--in line 7 of my 1040. the scholarship is for tuition and fees and I'm a degree candidate at an eligible university

[JotikaT2]

It depends upon what the funds were used for.

Scholarships are taxable if used for the following items: 

• Room & board 
• Travel & incidental expenses 
• Any fees, books & supplies not required for classes 

Scholarships are not taxable if used at an eligible school for a degree if: 

• Tuition & fees 
• Fees, books, supplies needed for classes 
• Scholarship or fellowship for services from: 
  • National Health Services Corps Scholarship Program 
  • Armed Forces Health Professions Scholarship & Financial Assistance program 

You can update your input by doing the following if you determine the scholarships should be allocated to tuition or room & board, as it was awarded to you:

1. Go to the Federal section of the program 
2. Select Deductions & Credits 
3. Select Expenses and Scholarships (Form 1098-T)
4. Select Edit to review your information for the 1098-T 

You can edit your input for this section under the Scholarship tab as indicated below.

[acep1111]

I'm using turbo premier, I do not have the window you show in the picture you pasted. The $47,997 in the second picture includes the $43,357 scholarship money reported in line 5 of the 1098-T.  If you're not familiar with turbo premier, please seek help from one of your colleagues (when i posted my question I was asked to tell which software, the picture you posted seems to be from the online platform).

This is what I see: