Hal_Al
Level 15

Education

The school should have sent you a form 1098-T. Many schools no longer mail out the 1098-T.  You obtain it at the  student's account on line. 

 

That said, you need to report the taxable scholarship on the student's return, regardless of the 1098-T. 

 

Q. When entering the scholarship amount, do I just put in the total scholarship MINUS the tuition/fees?  

A.  Yes. You may also subtract the cost of books and a required computer. 

 

Scholarships that pay for "Qualified Educational expenses (QEE) (tuition, fees and "course materials") are tax free.  Scholarships that pay for room and board and other non qualified expenses are taxable. 

 

When the TurboTax (TT) interview asks how much of the scholarship was used for room and board, enter the entire net amount (total scholarship minus qualified expense, tuition fees and course materials).   You must tell TT how much you want taxable by saying it was used for room &board.  Note the wording at that screen “or other expenses”. You didn’t have to literally use that much scholarship for R&B.