Hi Dave,
Thank you again! However, I apologize for what might be two seemingly silly follow-up questions. How do I determine if I paid income taxes on this? I checked my 1042-S, and there is no federal tax withheld (Box 7a: 0; Total withholding credit: 0). Does this mean I should choose the first instruction you advised?
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- Open your return in TurboTax
- Click on Wages & Income
- Scroll down to All Income
- Scroll down to Less Common Income
- Scroll down to Miscellaneous Income, 1099-A, 1099-C
- Click start
- Scroll down to Other reportable income
- Answer yes and record this as 1042S income and then the amount.
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Additionally, the instructions you provided here are slightly different from an earlier suggestion on another post (Where to file 1042-S income code 16), where another expert advised adding it under Other Scholarships/Grants/Fellowships in the 1098-T section. Would both methods be legally acceptable?
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It's scholarship income.
Enter under
- Deductions & Credits
- Education
- Expenses and Scholarships (Form 1098-T)
Select "Yes" for the first screen "Do you want to enter your higher education expenses?"
You can continue through without answering or entering any data until you get to the "Did You Receive a Scholarship or Grant in 2024?" screen
Select "Yes" enter the amount and Continue
The income will be on Schedule 1 line 8r
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