Enter it on your son's income tax return. We'll ask about scholarships and other financial aid when you get to the Education section in Deductions & Credits.
You may have also received a Form 1098-T with your scholarship or grant amount in Box 5. As you answer questions in the Education section, we'll ask about that form as well.
-
Scholarship, fellowship or grant money , if not
used for qualified education expenses is taxed as income and gets reported on Form
1040 Line 1 with SCH in front of the line number.
To enter
scholarships,
grants, stipends (With or without a 1099-MISC form):
- On the left
side navigation bar, click on Federal.
- Click on
the Deductions & Credits tab.
- Scroll down
to Education (if Education is not there, click on Check
for more tax breaks).
- Select Expenses
and Scholarships (Form 1098-T).
- On
the Do you want to enter your higher education expenses? screen,
select Yes.
- Continue
with the onscreen interview until you get to the Scholarships and
Financial Aid screen.
-
Enter your
scholarship money that was NOT included on your 1098-T form.
- Continue
with the onscreen interview until complete.
