Education

Even though you used your scholarship for education expenses, there are some instances where it may be taxable.

Scholarships are taxable when used for any of the following:

• Room and board
• Travel 
• Research
• Clerical help
• Equipment and other expenses that are not required

Per IRS Publication 970, a scholarship is only tax-free if it is used for qualified education expenses, not designated for other purposes and does not represent payment for teaching, research or other services.

Qualified education expenses include tuition, fees, books, supplies or equipment that are required for enrollment or attendance.

If your scholarship was used only for qualified education expenses, review your entries in TurboTax to make sure everything was entered correctly. See the steps below to access your education entries:

1. Click on Federal from the menu on the left-hand side of the screen and then on "Deductions and Credits" at the top.
2. Scroll down to "Education" and click "Show More"
3. Click on "Start" or "Revisit" to the right of "Expenses and Scholarships" and review your entries

You may also want to do a final review of your return to make sure there are no errors. Click on "Review" from the menu on the left-hand side of the screen.

Please see this TurboTax Help Article for more information.