Scholarship for Graduate School

[eaker619]

My son received a 1098-T for the scholarship amount.   He received a full scholarship for his graduate program - Classes were on-line and he lived at home.   He did work for the atheltic department during school under the progam with little pay but that was on a W-2.

 Do I need to enter this into TT?  Is this amount taxable?

[Hal_Al]

Q.  Do I need to enter this into TT? 

A. You do not enter his taxable scholarship, on your tax return, even if he is your dependent.

Q. Is this amount taxable?

A. Yes. If his scholarship  exceeded his qualifying expenses of tuition, academic fees, books & course materials, including a computer (but not room, board, transportation, student activity fees, insurance etc.); the excess is reported as taxable scholarship on THE STUDENT’S return.

[eaker619]

His program remission is $28,000

$5000.00 stipend per year

So his scholarship amount on the 1098-T is $7101.00 for the school year 22-23

So do I need to enter this in TT

[Hal_Al]

It's not clear what's going on. 

"So his scholarship amount on the 1098-T is $7101.00 for the school year 22-23"

Does that mean $7101 was in box 5? What was in box 1?

"$5000.00 stipend per year"

Was that part of the $7101 or something separate? How was the $5000 reported to him (any form?)

[eaker619]

Sorry - His 1098-T only had Box 5 filled out in the amount of $7101.00 (Jan 23-May 23).  He graduated in May of 2023.  Nothing in box 1

He also received a W-2 with part of the Stipend.

[Hal_Al]

Yes, the $7101 is taxable.  You enter the taxable income by entering the 1098-T, at educational expenses and scholarships.   TurboTax will automatically treat the difference between box 1 and box 5 as income. It goes on line 8r of Schedule 1.