I get a scholarship from the university I work at to go to grad school. do I report the amount of the scholarship over the $5,250 threshold or do I report all of it.

halfpint413 · ‎June 4, 2019

The 1098 T form I received from the school only put the amount over and beyond the $5,250. (example: total tuition was $9,500 and they put in box 1 $4,250). The total amount of scholarship I received was $6,907.50. But if I put that total amount it looks like on my tax return that I received more money than I paid to the school.

KrisD · ‎June 4, 2019

Only the amount over $5,250 COULD be taxable income. If the school is only reporting the expenses over and above 5250 of your award, only report the difference as scholarship received.

If the 1098-T reports 6907.50 in box 5, and box 1 only reports 4250, you'll need to adjust for Box 1 and add the 5,250.

Do this by clicking the "What if this is not what I paid?" link under box 1 of the 1098-T screen.

Be sure to keep good records, such as your school account statement and/or award letter with your tax file.

CLICK HERE for IRS Pub 970 Tax Benefits for Education