When you enter the 1098-T on your return (plus the $1717 that is not included on the 1098-T as 'Other Educational Expense'), TurboTax will tell you that there is Taxable Scholarship of $.... that the student needs to report on their return.
If this amount (plus his earnings) puts him under the threshold for required filing, he does not have to file. However, if he had Federal Tax withheld on his income, he may want to file a return to get that refunded. In that case, he would just add the 'Taxable Scholarship' amount to his return as follows:
- Click on Federal Taxes
- Locate Less Common Income and click Show more
- Locate and click to Start next to Miscellaneous Income, 1099-A, 1099-C
- Answer Yes to Did you receive any other wages?
- On the following screen you will locate Other reportable income and click Start
- Then you will enter SCH in the description box and the amount
@Club1820
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