Q. Should I be expecting a tax form from the organization before filing my 2022 tax return?
A. Not if it's a scholarship. But, for a definitive answer, you'll have to ask them. Rather than issuing a check to you, it's better, for tax purposes, if the organization sends the money to the school, for your account.
Q. If no tax form, how to report it?
A. You don't report it on any IRS form, if it was used for qualified expenses ( tuition, fees and books). In TurboTax (TT), you will be asked if you received any scholarships not shown on the 1098-T. Enter the amount and TT will match it to the expenses you enter. After adjusting for any tuition credit you may claim, it will report the any taxable amount on line 1 of form 1040 with an SCH notation.
Q. I believe the scholarship is tax free as long as I use it to pay for my tuition and books, and keep all my records of the payments. Is that correct?
A. Yes. Scholarships are tax-free if:
a. Funds are used for qualified education expenses,
b. Student is a candidate for a degree,
c. Student studies at an eligible educational institution, and
d. Award is non-compensatory
Otherwise, they are taxable – See IRS Publication 970
Q. I don't need to finish using up the scholarship fund in the year (2022) I received as long as I use it to pay for my tuition. Am I right?
A. No. If a check was issued to you in 2022, all the money, from that check, must be used for 2022 expenses.
