For those running into the issue where scholarships, that were used to cover eligible education expense for 2019, are added into taxable income. You need to:
- After you enter the 1098T you will come to a screen that says Here's Your Education Summary
- Select Education Information at the bottom of the list.
- This will ask you if you are working towards a degree and your answers to this and your enrollment status will adjust the taxable income appropriately for the scholarship.
Note that if my 1098-T box 1 exceeded the scholarship in box 5, this may not adjust your taxable income if you scholarship exceeds your qualified tuition and related expenses. You may need to adjust expenses to reflect actual tuition expenses that correspond to scholarships in education summary section.
