Taxable scholarship is reported on line 7 of your 1040 or 1040A .
According to the IRS:
"Generally, you report any portion of a scholarship, a fellowship grant, or other grant that you must include in gross income as follows:
-
If filing Form 1040 (PDF), Form 1040A (PDF), or Form 1040EZ (PDF), include the taxable portion in the total amount reported on the "Wages, salaries, tips" line of your tax return. If the taxable amount wasn't reported on Form W-2, enter "SCH" along with the taxable amount in the space to the left of the "Wages, salaries, tips" line. If filing Form 1040NR (PDF) or Form 1040NR-EZ (PDF), report the taxable amount on the "Scholarship and fellowship grants" line."
To enter in TurboTax:
To report the scholarship as income on the student's return,
please follow the instructions below. The income will be reported as earned
income on 1040 line 7 or 1040A line 7 or 1040EZ line 1.
Sign into your account
Take me to my return
Pick up where I left off
Click open the search box
Type education expenses into the
search box
Click "Jump to education expenses"
OR
Click Federal Taxes
Click Deductions & Credits
Scroll down to "Education" Show more
"Expenses and Scholarships (Form 1098-T)" Start
NEXT
You will need to walk through interview screens.
Answer "No" to getting a 1098-T since the
student does not report this form.
Do not report any payments billed or paid.
When you get to the screen that asks "Did You Receive a
Scholarship or Grant...?" Answer "Yes" and
a drop down will open.
Enter the amount.
(see screen shots below)
The amount of the scholarship will be added to line 7 with a SCH note.
