Education

It depends.

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: 

• 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 

You can check your input and make any allocations by doing the following:

Go to the Federal interview section. 

1. Select "Deductions & Credits" 
2. Select "Expenses and Scholarships (Form 1098-T)" and click start/edit 
3. When you see Your Education Expenses Summary, select Edit to the right of your name.  You will see the following screen: 

Select Edit to the right of Scholarships/Grants (for all schools).

You will be able to allocate the amount of the scholarships used or not used for room and board as you go through the screens.  It should look similar to the picture below.