Scholarship Exceeds Tuition Paid. It's asking for W-2 information on that for local taxes.

[shanley5]

Hello,

My university was generous enough in Spring Semester 2020 to offer students a $500 stipend for living expenses because of COVID-19. I received that stipend and it is noted on my 1098-T. However, because I graduated in Spring 2020, and all of my payments for Spring Semester 2020 were paid in 2019, I have 0 expenses and a $500 scholarship. I understand this counts as income and is taxable and filled out the expenses questions and American Opportunity Credit as asked. I am not claimed as a dependent.

I got to filling out local taxes, and my University is located in a city that has a local city tax. It's now asking for my employment history with "Scholarship and fellowship grants" and where my work station was located. I obviously didn't work for the grant/stipend they gave to us. It's asking for information like work location from my W-2 and how many hours I worked for the stipend. I'm not sure if I've entered something incorrectly, or if I should consider the 1098-T as a W-2 for these purposes, but then how do I answer the employment questions? I am thoroughly confused and would appreciate any help!

[shanley5]

My university was generous enough in Spring Semester 2020 to offer students a $500 stipend for living expenses because of COVID-19. I received that stipend and it is noted on my 1098-T. However, because I graduated in Spring 2020, and all of my payments for Spring Semester 2020 were paid in 2019, I have 0 expenses and a $500 scholarship. I understand this counts as income and is taxable and filled out the expenses questions and American Opportunity Credit as asked. I am not claimed as a dependent.

I got to filling out local taxes, and my University is located in a city that has a local city tax. It's now asking for my employment history with "Scholarship and fellowship grants" and where my work station was located. I obviously didn't work for the grant/stipend they gave to us. It's asking for information like work location from my W-2 and how many hours I worked for the stipend. I'm not sure if I've entered something incorrectly, or if I should consider the 1098-T as a W-2 for these purposes, but then how do I answer the employment questions? I am thoroughly confused and would appreciate any help!

[Hal_Al]

Simple answer: you do NOT consider the 1098-T as a W-2 for the purpose of city tax.

What city are you dealing with?

You do not file an Ohio city return, for the city your college is located in (unless it's also your permanent residence). 

[megrode0114]

Did you have any luck figuring this out? I am having this issue too and it will not let me remove it from the employer list but obviously I didn't work for my aid.

[RogerD1]

For purposes of assisting you, it will be helpful to know the name of the city that could potentially be taxing your scholarship in excess of tuition.  Cities vary widely in the the types of income that they assess a tax on.  In addition to the city that may be imposing the tax on your scholarship, any additional information about your situation (other W-2 income or any other details you are willing to share) will help us to better help you.