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Why is my 1098-t coming up as taxable

I received a school scholarship but when I enter it it shows that it's taxable.  It was used to pay for my tuition, not room & board

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3 Replies

Why is my 1098-t coming up as taxable

Is box 5 greater than box 1?

MarilynG1
Expert Alumni

Why is my 1098-t coming up as taxable

Does your 1098-T show a larger amount in Box 5 (scholarships) than Box 1 (tuition)?

 

If so, then scholarship not used for tuition can become taxable income.

 

It sounds like you may need to revisit the Education interview screens; you may have inadvertently indicated that your school scholarship was used for Room & Board.

 

If you can clarify with amounts of Tuition and Scholarship you have, we'll try to help.

 

Here's more info on Taxable Scholarships

 

 

 

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Hal_Al
Level 15

Why is my 1098-t coming up as taxable

Scholarships that paid for non qualified expenses are taxable. Tuition, fees, books and computers are qualified expenses.  If box 5 of your 1098-T is more than box 1, TurboTax will automatically treat the difference as taxable scholarship income unless you tell it differently.

 

If you indicate that you are someone else's dependent, TurboTax may automatically assume they are claimig a tuition credit, on their return. Be on the lookout, in the education interview for a screen "Amount used to claim the tuition credit" (or “Education Expenses used for a Tax Credit”). Check the amount in that box (usually $4000). Change it if needed. 

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