Since
excess scholarship money can be treated as taxable income on your return, many students see their refund go down, sometimes by a lot, after entering a second or third 1098-T, when scholarships exceed qualified expenses.
This is because the TurboTax program starts you off with the full standard deduction, which is subtracted from the income you’ve entered so far. You don’t get this deduction with each additional 1098-T you enter. This means subsequent 1098-Ts will appear to be taxed more, but what’s really happening is that you’re getting a more accurate picture of your income.
