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Was any of the scholarship income not designated to pay 2021 education expenses? If I received $1200 in extra financial aid that is considered income would I put it here?

I received $1200 in excess financial aid that was not used for education expenses and is considered income. I filled out the 1098 form, but there was no clear section to put the excess amount. There is a question "Was any of the scholarship income not designated to pay 2021 education expenses?" Would I put the amount here since it was not used for my education? Or is there another place where I could report it in order to make my amount of income go up.
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2 Replies
RobertB4444
Expert Alumni

Was any of the scholarship income not designated to pay 2021 education expenses? If I received $1200 in extra financial aid that is considered income would I put it here?

That is indeed where you would put it.

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Hal_Al
Level 15

Was any of the scholarship income not designated to pay 2021 education expenses? If I received $1200 in extra financial aid that is considered income would I put it here?

No, do not answer that question yes.  That question "assigns' the scholarship to previous year and/or next year's expenses.  If you enter it there it "just goes away" for your 2021 tax return. That's not your situation.  

 

Basically you  do nothing special with it. The simple fact that you enter more scholarship  amount than qualified expenses amount means TurboTax will automatically treat the excess as taxable income, adding the $1200 amount on line 1 of form 1040 with the notation SCH 1200.

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