@jcderry wrote:
Follow-up question on what is considered unearned income?
I got a sizeable amount of scholarships last year that are all written on my 1098-T. However, the amount in Box 5 is much larger than the amount in Box 1 which makes me believe that TT thinks this was unearned income. All the difference went to pay for off-campus housing but I have not submitted leases or anything on my form other than input the total amount of the lease. Is there any chance this is the reason I have been asked to complete this?
Also, I have seen on another post that if I claim that I supported more than half of my living expenses last year, then it will go away. If scholarships and grants are included in earned income that I used to support myself, then yes, this year I supported more than half of my income, but I don't know if this is included because my taxes are depicted in my 1098-T, not my W-2.
Sorry but scholarships do not count as you own support. It is support provided by others.
Reference: https://www.irs.gov/pub/irs-pdf/p501.pdf page 15.
Also see worksheet 2 (page 16) for determining support.
[Quot]
Scholarships.
A scholarship received by a
child who is a student isn't taken into account in
determining whether the child provided more
than half of his or her own support.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
