Hal_Al
Level 15

Education

This is simpler than you're making it.  Enter the 1098-T and nothing else.  Your income is the box 5 amount minus the box 1 amount; $28,314 - 12,813 = $15,501*.  The good news is: it's reported as scholarship income**(line 1 of form 1040 with SCH notation) and not subject to FICA tax, as wages would have been. 

 

None of it is  reported as employer assistance and none is  eligible for $5250 tax free.

 

*The previous comment about "normally included on a W-2"is irrelevant. The school put it in box 5 and that's all that matters

 

**The distinction between "scholarship income" and "other income"  is only important, if you can be claimed as a dependent, by someone else.  It affects the standard deduction calculation.