A scholarship or fellowship grant is tax free (excludable from gross income) only if you are a candidate for a degree at an eligible educational institution. Any amount of scholarship or fellowship that is greater than your education expenses is taxable.
If you have offsetting education expenses enter the scholarship or grant as part of your education expenses in that section of TurboTax.
-Select Federal Taxes
-Select Deductions and Credits
-Select Start or Update at Expenses and Scholarships (Form 1098T)
If you are not a candidate for a degree, or if you do not have offsetting education expenses, the fellowship should be reported as less common income. If you had expenses, but the income exceeds them, TurboTax will automatically include the balance as taxable income, on Schedule 1, as 'scholarship and fellowship grants not reported on W-2'.
@simarsingh25
[Edited 04/07/2025 | 9:21 am]
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