Scholarship income is funny, it is reported on line 1 of the 1040 and is not considered as unearned income, although it is not considered as earned income for the Earned Income Tax Credit unless it was reported on a W-2. It also does not add to the Federal filing requirement.
Report the amount of scholarship in the education section of the student's return (not the 1098-T, just the amount the student needs to claim).
It should flow to line 1 with "Schol" written next to it.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
