ChristinaS
Expert Alumni

Get your taxes done using TurboTax

Scholarship in excess of tuition is added to the wages line of your tax return. If the scholarship is for a year other than 2016, you should indicate that in the program. If you have nothing in box 1 or box 2, that is likely the case.

Did you receive the scholarship in 2016 for tuition that was reported on last year's 1098-T?

If so, you can either:

-Delete the 1098-T. Going through these screens is pointless.

OR

  1. Get to the screen inside the Education section labelled Here's Your Education Summary
  2. Click edit next to Scholarships/Grants
  3. continue to the question Did X's Aid Include Amounts Not Awarded for 2016 Expenses?
  4. Say Yes and enter the Box 5 amount since it applies to what was on your 1098-T last year

You won't be taxed on the scholarship if it is matched against tuition that was on 2015's 1098-T. There's really no point in entering the 1098-T, as you are not eligible for a credit when you have no 1098-T expenses.