Education

1. Yes, let's determine the taxable amount and the best way to report it.

2. Not all grants are taxable. For example, certain scholarships and fellowship grants may not be taxable if they are used for qualified education expenses.

If you incur expenses related to the grant, you may be able to deduct those expenses from your taxable income. For example, if you receive a grant to conduct research and incur costs for materials or labor, those expenses may be deductible.

from Topic no. 421, Scholarships, fellowship grants, and other 

You need to enter the 1099-MISC as it was reported and then we need to subtract out the legitimate expenses.

Let's enter the income. Follow these steps:

1. Log in to your return.
2. Go to income
3. Scroll down to Other Common Income
4. Select Income from 1099-MISC
5. Edit/ Start/ Revisit
6. Enter income -the income should be in box 3,
7. Enter tax if any withheld in box 4
8. Continue
9. Describe the reason -
10. continue
11. None of these apply
12. Continue
13. Did this involve main job?
14. No 
15. Continue
16. How often do you get?
17. Got in 2024 
18. Continue
19. Intent to earn money?
20. No
21. Continue
22. Do you have another?
23. No
24. Continue

Let's subtract out the qualified expenses:

1. Miscellaneous Income, 1099-A, 1099-C, Start
2. Scroll to the bottom
3. Other reportable income, Start
4. Other taxable income?
5. Select YES
6. Description 1099-MISC education expenses
7. Amount, enter your negative amount, for example -3,000
8. continue