Vanessa A
Employee Tax Expert

Education

No, there is not a difference between any of them, if they are not used for qualified education purposes, they become taxable income.  This means, if you received a grant/scholarship/award and used it for room or board or to buy a vehicle to get to school, that becomes taxable income.  

 

I am not sure where you are seeing this question, but you will need to enter your 1098-T on your return.  If you are the student, then anything in box 5 that is larger than box 1, will be considered taxable. If this is not the case, then if you are a dependent or can be claimed as a dependent, you do not need to enter the 1098-T. 

 

Are you claimed as a dependent on your parents return.  If so, they can also still enter the 1098-T on their return, even if you have a taxable scholarship to claim an education credit.  See the answer by Champ Hal Al for a detailed explanation on how to maximize your credit and minimize their scholarship income.

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