Unused federal tuition from Canadian University.

[esulalb]

hello

During 2018, my wife got an income from Canadian university as bursary while she was living in the US for research work she was doing.

At the same time, she has unused federal tuition from the 2017 notice of assessment (canada). that unused tuition was used for the Canadian income tax filing so we end up with zero income tax (Canada).

Now, filing US income tax,

what should be done?

shall I enter this bursary income? And enter the unused federal tuition from the 2017 notice of assessment? if yes, where can I enter this value.?

Thanks for your help

[Hal_Al]

The bursary income is reportable and taxable. It is reported as "other income" on line 21 of Schedule 1.  Scholarship (bursary) income is only tax free if used for qualified expenses (tuition fees and course materials).  Since it was paid for research, it is reported as other income (line 21), and not scholarship income (line 1 of form 1040).

You may not use tuition expenses paid in 2017, or for 2017, to claim a deduction or credit on your 2018 tax return. So the meaning of "notice of assessment" or whether the Canadian school is an eligible institution is not relevant.