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TurboTax bug? My child's 1098-T scholarship is incorrectly being treated as taxable

My child received two 1098-T forms for 2024.

 

First 1098-T, for a community college class taken through their high school:

   Box 1: 840.60

   Box 5: 840.60

 

Second 1098-T, for the 4-year college where the student is enrolled full time:

   Box 1: 49,252.00

   Box 5: 14,000.00

   Box 8 is checked

 

On their return in TurboTax, $14841 is showing up on Schedule 1, Line 8 as "Scholarship and fellowship grants not reported on form W-2". According to https://www.irs.gov/taxtopics/tc421, the scholarship money is not taxable as it was all used for qualified tuition and related expenses (Box 1 is greater than or equal to Box 5 on both forms). 

 

This seems like a TurboTax bug. It's making my child's return show as owing more than $1000. How can I fix this so the scholarship amount isn't treated as taxable income?

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2 Replies

TurboTax bug? My child's 1098-T scholarship is incorrectly being treated as taxable

I assume that the student is your dependent. If so, the student doesn’t report the 1098-T. You report it on your return and if eligible you will receive education credit. 

LPATs
New Member

TurboTax bug? My child's 1098-T scholarship is incorrectly being treated as taxable

Thank you!

 

Yes, the student is my dependent. 

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