I have already filed my taxes and claimed the 1098-T on my return. A message on TT stated that she would need to file a tax return to report the taxable income. She is 19 years of age and does not work and relies on me for support. Where would she report this income on a tax return?
If the total amount she needs to report is less than $6350, she does not need to report it or even file a tax return. That is because she has no other income and $6350 is the filing threshhold
Excess scholarship* goes on line 1 of form 1040EZ (line 7 of 1040 or 1040A) with the notation SCH. Entering it in TurboTax is a little tricky**.
*Excess scholarship is the amount exceeding qualified expenses (tuition, fees, books and other course materials, including computers). Basically scholarships that cover room & board are taxable.
** There are several workarounds for entering, depending on whether you are using online or download software. Reply back if you need instructions
If the total amount she needs to report is less than $6350, she does not need to report it or even file a tax return. That is because she has no other income and $6350 is the filing threshhold
Excess scholarship* goes on line 1 of form 1040EZ (line 7 of 1040 or 1040A) with the notation SCH. Entering it in TurboTax is a little tricky**.
*Excess scholarship is the amount exceeding qualified expenses (tuition, fees, books and other course materials, including computers). Basically scholarships that cover room & board are taxable.
** There are several workarounds for entering, depending on whether you are using online or download software. Reply back if you need instructions