The situation can be explained in more detail as follows:
The amount in Box 5 (Scholarship or Grants) of the 1098-T exceeds the amount in Box 1 (Tuition and Qualified Education Expenses). Even after deducting Required Education Expenses from the excess amount, there is still a remaining balance. This means that the excess amount of grants is considered taxable income and must be reported as income in TurboTax.
For example:
If you received a $4,000 scholarship and had $3,000 in qualified education expenses, you would have $1,000 ($4,000 - $3,000) that needs to be reported as taxable income.
👉 However, the question is: How can this amount be added to the "Wages, salaries, tips" line of the tax return without a W-2? Or should it be reported as "Other Income"?
