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jgehlhaar
New Member

Why is TurboTax treating my scholarship as taxable income when it isn't?

I am having the same issue!  As reported, box 1 of 1098-T is much greater than the value in Box 5 and if I zero out box 5, then taxes reflect earned income, passive income, etc.  Otherwise, value of box 5 goes towards income and TT performs the wrong calculation.

 

How do I fix this?

 

 

jgehlhaar
New Member

Why is TurboTax treating my scholarship as taxable income when it isn't?

Where do you enter "qualified expenses"?

 

Hal_Al
Level 15

Why is TurboTax treating my scholarship as taxable income when it isn't?

In TurboTax enter at:
Federal Taxes Tab

Deductions & Credits

-Scroll down to:

--Education

  --Education Expenses

Why is TurboTax treating my scholarship as taxable income when it isn't?

I was able to fix it. I kept going until Turbo Tax asked about my student information. Even though the name and address was correct, I select edit. It then opened up a dialogue box which included the entries for the 1098-T. 

LMS72
New Member

Why is TurboTax treating my scholarship as taxable income when it isn't?

I’m still confused.  Much of my grant scholarship  money is Fafsa, GI Bill and Federal And Education loans. As soon as it asks me the part about tax free benefits it only wants the gi bill information and not the Fafsa or loans. The minute I put my GI Bill amount in there I ended up owing a lot of money.  This makes no darn sense to me. I should not have to pay taxes on any of these yet now turbo tax has taken my school grants and added them to wages tips and other compensation in line 1 of my returns. This is the first year it has ever done this out of my four years of school.  

I don’t know how to fix it. But I won’t be using TT again. 

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