1098-T does scholarship (including room and board) beyond qualified expenses need to be reported? If so- I am a dependent- is this reported on mine or parents return?

[DianeW777]

In response to question (a): Students on a Reserve Officer Training Corps (ROTC) scholarship also receive an ROTC subsistence stipend from the military (not the university) to help them pay for their room and board, meals, transportation and everyday living expenses. This subsistence allowance is also tax free when paid by the military.

In response to question (b): Money offered by the university that is used to pay room and board is taxable because it is not paying education expenses (tuition, fees and course materials and required supplies).

• ROTC Payments for Advance Training
• Tax Breaks for Military
• IRS Publication 4940

@cinayw

[FJMT76]

I am looking on the same situation. so far I've been told by ROTC people that the scholarship is completely tax free. It is like the GI bill or vet benefits.

[Hal_Al]

@FJMT76 

Yes, ROTC stipends and scholarships are completely tax free.

Much of the discussion, in this thread, is about how to treat other scholarships, when the student-cadet also has  ROTC money.

So, you'll need to clarify what "I am looking on the same situation" means, if that doesn't answer your question. 

[whatabouttaxes23]

I have a question regarding ROTC scholarships:

As an Army 4 year ROTC scholarship award winner you have to elect -

1) Tuition and Fees to be paid OR

2) $12,000 towards Room and Board.

My question is if you elect $12,000 towards room and board - do you have to report/ claim it on your taxes and or pay taxes on it?

I am not interested in wiki how links as a response and it doesn't answer the question with a U.S. tax code/law or any other U.S. code reference. Thank you for your help.

[Hal_Al]

Q. My question is if you elect $12,000 towards room and board - do you have to report/ claim it on your taxes and or pay taxes on it?

A. Yes.  That is, all the "wiki how links" seem to say so. Example: https://www.wright.edu/army-rotc/guaranteed-reserve-forces-duty (one of many)

I'm not sure that's totally correct. If the scholarship amount shows in box 5, of the 1098-T, the taxable portion can still be reduced by the box 1 amount for qualified education expenses (adjusted for any expenses used to claim a tuition credit).  But, if the conditions of the grant say it is restricted to being used for R&B, then you can't do that