Yes, you will need to upgrade to report the 1098-T, but if you know the amount you need to claim, you can enter that amount in TurboTax Free.
Please remember that if you are a dependent, the 1098-T is reported on the return of the person that is claiming you for a credit. Since you indicate that there will be reportable income, yes, you, the student must report the income.
You may type 1098-T into the search box and click the "Jump to" link.
Once you enter the 1098-T into the TurboTax program, be sure to continue through the entire interview. You will be asked about additional expenses not listed on the 1098-T, such as books.
I also strongly recommend you look over the 1098-T and your online school account. Make sure no numbers are crossing the calendar tax year. Sometimes a scholarship posts in one year for expenses incurred in a different year.
If you are sure the 1098-T is correct, enter it into the TurboTax program and the program will figure the taxable income for you and post that amount on your tax return.
If you decide to enter the 1098-T and have TurboTax do the math, and if you start in TurboTax Free Online, you will be prompted to upgrade. If using a Desktop CD, you will need at least Deluxe.
OR - IF YOU KNOW THE AMOUNT YOU NEED TO CLAIM AS INCOME you can enter it following the steps below without entering the 1098-T. This can be done in TurboTax Free:
Click on Tax Home on the left side bar
Click on Wages & Income along the top
Click Review/Edit if needed
Scroll down and click Show more next to Less Common Income
Scroll down that list to the last option and click Start next to Miscellaneous Income
Scroll down to the last item on that list and click Start next to Other reportable income
In the Description box type SCH
Next, enter the amount you must claim in the box next to your name
Click Continue and Done
The amount should show on Schedule 1 line 8 and flow to the 1040 line 1
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
