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megrode0114
Returning Member

"Scholarships and fellowship grants" showing up as wages on city tax return

I am almost positive I properly filled out my 1098-T on both my federal and state tax returns for my scholarships. However I did have quite a bit of aid that exceeded my tuition (and despite being used for room & board) is considered a "taxable income". 

 

I'm trying to fill out my city taxes for East Lansing, and under East Lansing Wages, there is a line titled "Scholarships and fellowship grants" with the taxable amount of income that exceeded my tuition and it is asking for an employer ID and information about how long I've worked there, etc.

 

Here is what it says on the city tax page:

 

Here is a list of employers reported on your federal return. For each employer we need to:
Declare dates of employment
Specify your actual work location (Does it differ from W-2 address?)
Allocate income earned in East Lansing while you lived outside East Lansing

 

In the list below employer names, there is one that says "Scholarships and fellowship grants". I cant remove it and I don't think there's another place for it.

 

I did not fill out my 1098-T as a W-2 on either my state or federal return. As far as I know, East Lansing does tax this aid as income but it isn't a W-2 so I'm not sure what to do here. Please help! This happened last year as well and we couldn't figure it out!

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3 Replies
DaveF1006
Employee Tax Expert

"Scholarships and fellowship grants" showing up as wages on city tax return

The East Lansing return detected the taxable income reported on your return when you entered your 1098 T.  Any scholarship amount that exceeds tuition is taxable income, and the information provided by the 1098 T populates in the federal, state, and city returns. If it's income, East Lansing wants a piece of it.

 

My suggestion is to enter the same EIN that's on the 1098 T and put in the dates you attended school just to be able to file the return.

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megrode0114
Returning Member

"Scholarships and fellowship grants" showing up as wages on city tax return

Thanks, I'm trying to fill it out this way.

 

I'm now running into another issue where turbotax is recognizing my scholarships as other income as well on a separate page of city taxes. By allowing turbotax to label my scholarship as income as an employer, the total taxable income that I'm seeing should be correct. However on another page titled "East Lansing Excludable Other Income", this is what it says: 

 

If any of your total other income of (scholarship amount) is not taxable by East Lansing, enter the source of the other income, the tax ID of the payer (if applicable) and the nature of the income.

 

Source of income: blank
Tax ID Number: blank
Nature of Income: blank
Excludable Amount: (scholarship amount automatically put in by turbotax)

 

I can't remove this number, and setting it to 0 just adds that total to my total taxable wages increasing it over what it should be, basically adding my scholarship amount twice to my total taxable wages as it used it from the employment screen and now this one. 

Hal_Al
Level 15

"Scholarships and fellowship grants" showing up as wages on city tax return

It sounds like it might be easier to use the fillable form at the city's web site. 

 

That's been my experience doing Ohio city tax returns. 

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