Q. Turbo Tax is telling me I have to report a specific amount onto my son's tax return. Where do we report the income from tax free scholarship received?
A. On the student's return, In TurboTax (TT), enter at the same place you entered the 1098-T, on your return:
Federal Taxes Tab (Personal for H&B version)
Deductions & Credits
-Scroll down to:
--Education
--Education Expenses and Scholarships (1098-T)
Since you already know the amount, the simple thing is to just enter the 1098-T with that amount on box 5 and 0 in box 1. Enter no other numbers.. That will put all his excess scholarship as income on his return (line 8r of Schedule 1).
Alternatively, you can go thru the whole interview and hope TT comes up with the same answer. In his interview, you should eventually reach a screen called "Amount used to calculate education credit" (or similar wording). Be sure the amount in that box is the same amount you used on your return (usually $4000).
