I am a National Health Service Corps scholarship recipient. On my 1098-T, box 5 contains the amount of tuition that was covered by the NHSC, which is supposed to be strictly tax-free. However, when I enter it on TurboTax, the amount in federal tax I owe sky-rockets. Can I consider this amount "tax free employer provided assistance" and mark it as such so it is not incorrectly taxed?
Note: I do still want to include my 1098-T when I file because I received the scholarship halfway through the year and would still like to deduct the tuition payments I made earlier in the year (box 1).
