Education
IRS Tax Topic 421 here, states:
If you receive a scholarship, a fellowship grant, or other grant, all or part of the amounts you receive may be tax-free. Scholarships, fellowship grants, and other grants are tax-free if you meet the following conditions:
- You are a candidate for a degree at an educational institution that maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities; and
- The amounts you receive are used to pay for tuition and fees required for enrollment or attendance at the educational institution, or for fees, books, supplies, and equipment required for courses at the educational institution.
Scholarship income is reported under Education expenses. At the screen Here's your education summary, select Edit to the right of Scholarships/Grants.
You may not have established your daughter as a student. In TurboTax Online, follow these steps.
- Click on Federal
- Click on Deductions & Credits.
- Scroll down to Education. Click the down arrow to the right.
- Select Start / Revisit to the right of Expenses and Scholarships.
- You will answer several questions about the student, the school and the student's IRS form 1098-T.
