Where to enter Scholarship Income that is taxable (used for room/board) for 2018 for my son who is filing his tax return?

[HelenaC · Accepted solution]

Enter it on your son's income tax return. We'll ask about scholarships and other financial aid when you get to the Education section in Deductions & Credits.

You may have also received a Form 1098-T with your scholarship or grant amount in Box 5. As you answer questions in the Education section, we'll ask about that form as well.

• Scholarship, fellowship or grant money , if not used for qualified education expenses is taxed as income and gets reported on Form 1040 Line 1 with SCH in front of the line number.

To enter  scholarships, grants, stipends (With or without a 1099-MISC form):

1. On the left side navigation bar, click on Federal.
2. Click on the Deductions & Credits tab.
3. Scroll down to Education (if Education is not there, click on Check for more tax breaks).
4. Select Expenses and Scholarships (Form 1098-T).
5. On the Do you want to enter your higher education expenses? screen, select Yes.
6. Continue with the onscreen interview until you get to the Scholarships and Financial Aid screen.
7. Enter your scholarship money that was NOT included on your 1098-T form.
8. Continue with the onscreen interview until complete. 

[bluemax786]

I was able enter the scholarship income in the screen which shows "Did you pay for room and board with a Scholarship or Grant ? Here you need enter how much of the Sch/Grants you paid for Room and Board. This will be added in 1040 Line 1 as SCH.  Thank you.

[HelenaC]

You're very welcome. Thank you for using TurboTax!

[ghughes7454]

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[Club1820]

Hello. I want to clarify something.  we are claiming my son as a dependant and are thus using the 1099-T on our own tax form. I assume this is correct and allowable.  We've already done this in turbo tax without errors.  But he may have taxable grant income.  TT did ask us this and we said yes.  TT then instructs us that this income should be reported on my son's tax return.  So just verifying that this is correct and allowable, - we CAN report my son's 1099-T on OUR tax return and his grant income on HIS tax return.  Thanks.

Also, is Grant income determined STRICTLY by the 1099-T Form Box 1 & Box 5?  If Box 5 is greater than Box 1, you have report-able grant income?  I ask because itemized expenses show part of what is in Box 1 (Payments Received for qualified tuition and related expenses) does actually contain payments for Room & Board and his grant does pay for a portion of that.   Should we just go by Box 1 & Box 5 and it showing Box 1 greater than Box 5 and no reportable income?

[Hal_Al]

Q.  So just verifying that this is correct and allowable, - we CAN report my son's 1098-T on OUR tax return and his grant income on HIS tax return?

A.  Yes. The 1098-T is  an informational document and can be used as an input mechanism on both tax returns.

Q. Is Grant income determined STRICTLY by the 1099-T Form Box 1 & Box 5? 

A. No.  As explained at your other post, you enter that from your own records. 

https://ttlc.intuit.com/community/college-education/discussion/re-how-do-i-claim-1098t-scholarships/...

On his return, the simplest work around is to manually calculate the taxable amount of scholarship and enter the 1098-T, on his return, with 0 in box 1 and the  taxable amount  in box 5.