@Lg34 wrote:
I am confused by this response. We have a similar situation (scholarship including room and board). However, my read of Publication 590 Table 1.1 (the last row) suggests that we SHOULD consider the non-tuition portion (essentially a stipend) as compensation. I don’t see where it requires this to be reported on a W2. One additional question though. The example provided discusses graduation students. What about undergraduates? Do we take Table 1.1 as the full set of conditions (which doesn’t specify graduate or undergraduate), or should we read the example (grad student) to be an added constraint? Note - turbotax did not ask for this detail. Thanks!
That is correct for 2020. That was a tax law change that applies to 2020 and later.
The topic of this thread (a year ago) was about a 2019 tax return when the law was different and did not allow that.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
