Unfortunately, this does not answer our question. We must report the 1098-T form as part of the parent tax return, as a 529 account is being used to pay for the remaining college expense. The question was specifically how to answer the specified question that comes up in TurboTax. The scholarships exceed the qualified expenses. Again, the TurboTax question asks if part of his scholarship on the 1098-T includes amounts already reported as income on his tax return. However, under the question the choices are “Yes, he had scholarship or other aid reported on a Form W-2 or Form 1099-MISC” or “No, he didn’t have any scholarship or other aid reported on a Form W-2 or Form 1099-MISC”. It is required to be reported as income on his tax form (1040EZ, line 1), but the exceedance amount is not specifically on a Form W-2 of 1099-MISC.
