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Being a fulltime student does not exempt your scholarship from being taxable.
Scholarships that pay for qualified educational expenses (QEE - tuition, fees, books and other course materials, including a computer) is tax free. Scholarship amounts that exceed QEE is taxable income, on the student’s tax return. Room & board are not QEE.
If box 5 of the 1098-T exceeds box 1, TurboTax (TT) will treat the difference as taxable income, unless you enter additional QEE at books and other expenses.
Scholarship funds received in excess of your qualified educational expenses may be taxable and might need to be reported in your taxable income.
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