Scholarship income from 1098T in excess of Tuition...
cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Level 1

Scholarship income from 1098T in excess of Tuition/Fees earned or unearned income?

TT says earned; it automatically populates to "earned" in 6251 Wks, Exemption - Line 5  line 8a.  
An accountant who I spoke with says it is "unearned", which sets off an ATM tax.
Is TT in error here?
2 Replies
Highlighted
Level 15

Scholarship income from 1098T in excess of Tuition/Fees earned or unearned income?

It is unearned income.  But, if you can be claimed as a dependent on someone else's return, taxable scholarship is treated a earned income for purposes of calculating your standard deduction.  It is still not earned income for purposes of the earned income credit (which dependents can't get anyway) or qualifying for an IRA deduction. 

 

if entered properly, TurboTax (TT) puts it on line 1 of form 1040, with the notation SCH

Highlighted
Level 1

Scholarship income from 1098T in excess of Tuition/Fees earned or unearned income?

Thanks.

Do you know where that is explained in any IRS publications? 

Privacy Settings