On your 1098 T, if the amount of scholarship money on line 5 exceeds the amounts in Box 1 or 2, then the excess amount of scholarship money is treated as taxable income. Turbo Tax does allow you to claim expenses to report to reduce the scholarship income:
- After you enter the 1098T you will come to a screen that says Here's Your Education Summary
- look underneath where it mentions Other Education Expenses (for all schools)
- Here it will ask you information about books. enter an amount paid for Books
- then back in expense summary screen, select scholarships and navigate through the questions
- You can claim room and board expenses that will reduce your scholarship income
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