Segal Education Award

[spaceelephant3]

I used my Segal Award from AmeriCorps in 2020 to pay for tuition. I reported it on the 1099-MISC, roughly $7,000. I also payed about $700 out of pocket to cover the rest of tuition. On my 1098-T from the university, they report that $700 as the amount of tuition paid, and not the full $7,700. My question is, am I allowed to count the $7,000 from AmeriCorps as "Tuition and Fees not entered on 1098-T"? 

[RayW7]

The Segal Education  Award is handled a bit differently than most education benefits.

Segal Education Awards are taxable in the year they're paid.  Report the amount you received  on the 1099-MISC as Other Income. 

Because the award is taxable income, any tuition, fees, books, and supplies paid with the amount is eligible for education credits. 

[spaceelephant3]

Thank you @RayW7, I will report that tuition as an education credit then. Gives me a big break! Appreciate the feedback.

[Tpetrillo]

When I add the 1099 from my Segal Award, it computes Social Security tax and Medicare tax. I thought this award was not subject to those taxes.

[SamS1]

It is not subject to SS or Medicare taxes.  It might be easier to enter it as Other Income.  Delete the 1099-MISC and add it under Less Common Income.  After you have logged in and are in your return:

• If you do not see all the income categories, Click on the "Add additional income"
• Now scroll to the bottom of the income screen and click "Show More" next to the Less Common Income category
• Scroll to the bottom and click "Start" the Miscellaneous Income
• Scroll to the bottom for "Other Reportable Income" then "Start"
• There you will see to add a brief description and the amount.  Ignore the 1099-Misc warning and continue through the screens.

To delete the 1099-Misc,  After you have logged in and are in your return in TurboTax Online:

• Go to Search at the top of the screen.
• Enter Form 1099-MISC in the search box. 
• You will see a Jump To function that will take you to the 1099-MISC input screens. 
• Delete the 1099-MISC in question by clicking on the trash can next to the form