Yes, if you are otherwise required to file a tax return. Your scholarship could be considered taxable income.
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If your only income is a completely tax-free scholarship or fellowship grant, you don't have to file a tax return and no reporting is necessary.
- If all or part of your scholarship or fellowship grant is taxable then you are required to file a tax return. Report the taxable portion by simply entering your 1098 T into Turbotax in the Education section and TurboTax will calculate any taxable amounts for you.
Box 5 on your 1098 T shows the amount of scholarships and grants that were paid directly to the school for the student's qualified expenses.
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If the amount in Box 5 (your scholarships) is GREATER THAN the amount in Box 1 for Tuition Paid (or Box 2 for tuition billed- whichever is filled in on your 1098-T ), this means that you had an excess amount of scholarship, and this amount is taxable income. You can use TurboTax to try to reduce the amount of this taxable income by entering in educational expenses under the Education Deductions & Credits section.
