Education

You will report the 1098-T tuition on your tax return and enter any applicable scholarships as part of your entries into the program.

1. Go to the Federal section.
2. Click on Deductions & Credits
3. Select the Education tab
4. Select Tuition and proceed to answer the questions.

Scholarships are taxable if used for the following items:

• Room & board
• Travel & incidental expenses
• Any fees, books & supplies not required for classes

 Scholarships are not taxable if used at an eligible school for a degree if used for:

• Tuition & fees
• Fees, books, supplies needed for classes
• Scholarship or fellowship for services from:
• National Health Services Corps Scholarship Program
• Armed Forces Health Professions Scholarship & Financial Assistance program

Help for when scholarships are taxable vs. not taxable

The excess of the scholarship income over the actual allowed education expenses would be reported on your daughter's return as scholarship income. 

However, she would need to meet the filing requirements threshold to determine if she even needs to file a return. 

Please see the following to help you determine if she needs to file a tax return.  

Gross income amount for dependents