- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Education
According to the IRS, certain conditions must be met for a scholarship or fellowship to be tax-free:
-
The student must be a degree candidate at an eligible educational institution
- The scholarship or fellowship money is used for qualified expenses. This includes tuition and fees, books, and course- or degree-related costs (like supplies required for specific classes) but does not include other college-related costs such as room, board and travel.
- The money does not represent wages for teaching or other work.
Box 1 of Form 1098-T reports "Payments received for qualified tuition and related expenses". Box 5 reports Scholarships or grants. I suggest you revisit the Education section, and make sure the Form 1098-T was entered correctly, and that the proper amount of scholarship money was applied towards payment of tuition and fees.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
**Mark the post that answers your question by clicking on "Mark as Best Answer"
March 7, 2021
3:08 PM