Vanessa A
Expert Alumni

Deductions & credits

The amount of the scholarship that was used for education expenses would not be taxable income as these would be qualified education expenses

Any amount not used for education would be taxable income and you would report it as other income.

It would not be reported on form 2555 because it is not earned income, it is unearned income which is taxed at ordinary income rates. 
 

 

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