Yes, if your scholarship exceeds both your tuition expenses and your other qualified education expenses, the leftover is automatically added to your taxable income on Line 1 of Form 1040. If you preview Form 1040, you should see an amount written next to line 1 "SCH" then the amount of your scholarship that you are being taxed on.
Bear in mind that unless your scholarship specifically only covers tuition and fees paid to the school, they can generally be used for other expenses like supplies, books, and room and board.
To preview your 1040:
- Open or continue your return.
- Select Tax Tools in the left menu (if you don't see this, select the menu icon in the upper-left corner).
- With the Tax Tools menu open, you can then view your 1040 form: Select Tools. Next, select View Tax Summary in the pop-up, then Preview my 1040 in the left menu
- Scroll down until you see Form 1040 Line 1. This amount should include your excess scholarship income.
