topic How to enter a 1098T https://ttlc.intuit.com/replies/4194... in Get your taxes done using TurboTax

Where do I enter scholarship income?

mike-conner — Fri, 07 Jun 2019 22:37:23 GMT

I received a taxable scholarship that does not have a W-2. Where do I input the income for this award?

If your taxable scholarship amount was not reported on a...

Heather14 — Fri, 07 Jun 2019 22:37:25 GMT

If your taxable scholarship amount was not reported on a Form 1098-T, you can see the steps for entering the scholarship amount into TurboTax is as follows:

Log in to your TurboTax Online account, or open your TurboTax CD/Download program
Choose Take me to my return
Click on Federal Taxes
Click on Wages & Income
Locate Less Common Income and click Show more
Locate and click to Start next to Miscellaneous Income, 1099-A, 1099-C
Answer Yes to Did you receive any other wages?
On the following screen you will locate Other reportable income and click Start
Then you will enter SCH in the description box and the amount
Click Done

I almost did this, but I am not convinced it is the best...

ZamTax — Fri, 07 Jun 2019 22:37:26 GMT

I almost did this, but I am not convinced it is the best way to do it. IRS publications like Pub 525 pretty clearly say to put taxable scholarships on line 7 of the 1040, labeling with SCH next to the taxable scholarship income. Answering the TurboTax questions about educational expenses and scholarships automatically did put our excess scholarship income as taxable income on line 7, as the IRS instructions say to do, even without a 1098-T. However, if I follow the above directions this SCH income ends up on line 21, and it feels like some kind of workaround from how TurboTax is set up to work. I'm not sure it would be "wrong" (legally/ethically) to put it on line 21 and not line 7, but why not put it on line 7 like the IRS says and like TurboTax is set up to do? I also felt like it worked out better for us tax-wise to put it on line 7, though perhaps I'm confused and there wasn't a difference.

Answering the Turbo Tax questions about educational expen...

pinochio7 — Fri, 07 Jun 2019 22:37:27 GMT

Answering the Turbo Tax questions about educational expenses and scholarships did NOT automatically put the excess scholarship income as taxable income on Line 7 or line 21. My returns were filed thinking that I had answered the questions and the numbers had been sent to income but they weren't. Now I am facing an amended return and penalties and interest on that income. What happened ? Why did the number not flow thru to income on the 2017 return? Is there an error in the software for 2017?

ghughes7454 — Fri, 07 Jun 2019 22:37:28 GMT

How to enter a 1098T https://ttlc.intuit.com/replies/4194...

VolvoGirl — Fri, 07 Jun 2019 22:37:31 GMT

How to enter a 1098T

https://ttlc.intuit.com/replies/4194409

Open (continue) your return, if you're not already in it....

ClarkeB — Fri, 07 Jun 2019 22:37:33 GMT

Open (continue) your return, if you're not already in it.
In TurboTax, search for 1098T (lower-case works also) and then click or tap the "Jump to" link in the search results.
Answer any education questions that pop up (enrollment status, name of school, and so forth).
- If you land on the Education Expenses Summary screen, click or tap Edit next to the student in question, then edit the Tuition item.
At the Did you get a 1098-T? screen, answer Yes and continue.

After you enter your 1098-T, we'll ask about other expenses (books, supplies, equipment) and financial aid.

The correct place to enter it, per IRS, and per prompts i...

wless4wless — Fri, 07 Jun 2019 22:37:34 GMT

The correct place to enter it, per IRS, and per prompts in TurboTax (If your lucky to hit the prompt), is in the Wages, Salaries, & Tips Worksheet. You will need to locate that worksheet in the forms area in TurboTax. Enter it in the Scholarship line. Line 13. The system will then automatically put in on 1040 line 7, and add SCH as the prefix. It seems that TT does not have the option to enter it in via the step-by-step area.

It should be here, Enter a 1098-T under Federal Taxes Ded...

VolvoGirl — Fri, 07 Jun 2019 22:37:36 GMT

It should be here,
Enter a 1098-T under
Federal Taxes
Deductions and Credits
Scroll down to Education
Education Expenses - Click the Start or Update button

Re: Answering the Turbo Tax questions about educational expen...

Furzinknot — Sat, 08 Feb 2020 15:34:30 GMT

for the 2017 year, that happened to me as well.

I did not know it until the IRS came asking for a bunch of money.

Went through nearly a year of hell working with TaxAudit service (best advice - spend the $45 and sign up for it - well worth it) and reduced my fees, but I still ended up having to pay a fairly large chunk of change. Was not fun.

Re: Where do I enter scholarship income?

rnelson9 — Sat, 08 Feb 2020 18:58:38 GMT

TurboTax did it for me when I was on my daughters return:

1. For the section: Education - Scholarships, student loans, tuition (1098-E and 1098-T)

--Go to Expenses and Scholarships (Form 1098-T) to enter your 1098T information.

--For question: "Did You Pay for Room and Board with a Scholarship or Grant?" - I answered "Yes" then entered the amount (in my case this was simply Box 5 minus Box 1 on the 1098T) in the field for "Total Used." **Only this section was needed for my tax situation; be sure to enter amounts, for the other questions re:scholarships/grants , that are specific to your tax needs.**

--Answer all other questions as appropriate to complete the section.

2. Expand the "Tax Tools" options located in the toolbar to the left (where you see Tax Home, etc).

3. Click "Tools" (a "Tool Center" window opens).

4. Under "Other helpful links", select "View Tax Summary".

5. The "Review Tax Summary" Opens.

6. In the left toolbar, you should see "Preview my 1040" - click to open.

7. You should now see the "Federal 1040" form.

8. Scroll down in the form and stop at: "Form 1040 or Form 1040-SR, Lines 1 - 6"

9. Line 1 Wages, salaries, tips, etc. Attach Form(s) W-2 should include an amount with "SCH" next to it.

Re: I almost did this, but I am not convinced it is the best...

rnelson9 — Sat, 08 Feb 2020 19:02:16 GMT

TurboTax did it for me when I was on my daughters return:

1. For the section: Education - Scholarships, student loans, tuition (1098-E and 1098-T)

--Go to Expenses and Scholarships (Form 1098-T) to enter your 1098T information.

--Answer all other questions as appropriate to complete the section.

2. Expand the "Tax Tools" options located in the toolbar to the left (where you see Tax Home, etc).

3. Click "Tools" (a "Tool Center" window opens).

4. Under "Other helpful links", select "View Tax Summary".

5. The "Review Tax Summary" Opens.

6. In the left toolbar, you should see "Preview my 1040" - click to open.

7. You should now see the "Federal 1040" form.

8. Scroll down in the form and stop at: "Form 1040 or Form 1040-SR, Lines 1 - 6"

9. Line 1 Wages, salaries, tips, etc. Attach Form(s) W-2 should include an amount with "SCH" next to it.

Re: Where do I enter scholarship income?

rnelson9 — Sat, 08 Feb 2020 19:04:58 GMT

TurboTax did it for me when I was on my daughters return:

1. For the section: Education - Scholarships, student loans, tuition (1098-E and 1098-T)

--Go to Expenses and Scholarships (Form 1098-T) to enter your 1098T information.

--Answer all other questions as appropriate to complete the section.

2. Expand the "Tax Tools" options located in the toolbar to the left (where you see Tax Home, etc).

3. Click "Tools" (a "Tool Center" window opens).

4. Under "Other helpful links", select "View Tax Summary".

5. The "Review Tax Summary" Opens.

6. In the left toolbar, you should see "Preview my 1040" - click to open.

7. You should now see the "Federal 1040" form.

8. Scroll down in the form and stop at: "Form 1040 or Form 1040-SR, Lines 1 - 6"

9. Line 1 Wages, salaries, tips, etc. Attach Form(s) W-2 should include an amount with "SCH" next to it.

Re: Where do I enter scholarship income?

mommycakes 217 — Thu, 20 Feb 2020 16:11:55 GMT

did your daughter have work income too? or file her own return?

Re: Where do I enter scholarship income?

rnelson9 — Sat, 22 Feb 2020 12:34:00 GMT

Yes - She had income from Work Study for which she received a W-2, since these earnings are not included on her 1098-T.

Yes - She filed her own return - I put the numbers in TurboTax to see how it looks, but her boyfriend temps for Jackson Hewitt during tax season, so I let him submit her return since he gets a free code for one friend/family, and it helps with his metrics.

I did remind him that she was a dependent and to report the same amount, in excess of qualified education expenses, as taxable income with the "SCH" designation as I did; as I know their system is different from TurboTax.

Outcome: per her boyfriend, her federal return was not impacted. Even with the SCH amounts, her total income was under the standard deduction and she is due a refund-- equal to the amount of federal income tax that was withheld.

It did, though, impact her state return. He said NC's standard deduction is lower, and her taxable income exceeded the amount. So she owes the state, but it's not a lot, and she can easily cover the balance from her federal refund.

Re: Where do I enter scholarship income?

Bayu — Sat, 29 Feb 2020 10:06:09 GMT

I filed my daughter's 1098T in my return (not hers).

Same case as yours, there's an excess between box 1 and 5 and I use them as "to pay room and board".

Now in my daughter's return, where and how in TT that she should put that taxable excess as income?

Thanks.

Re: Where do I enter scholarship income?

LinaJ2020 — Sat, 29 Feb 2020 16:12:02 GMT

You will enter the Form 1098-T information on her return. If you are referring to claim one of those educational tax credits, room and board are not considered as qualifying expenses. Therefore, the excess scholarship portion is a taxable transaction. You would simply enter the Form 1098-T on her return. If your daughter meets the filing requirements, she would pay taxes on it.

@Bayu

Re: If your taxable scholarship amount was not reported on a...

wintergirl123 — Sun, 29 Mar 2020 19:00:55 GMT

That worked for me in 2019, but not for 2020. If I answer the interview questions, I still don't get where I need to to report the scholarship info.

Re: If your taxable scholarship amount was not reported on a...

DeanM15 — Mon, 30 Mar 2020 17:02:14 GMT

To enter your 1098T and scholarship information in TurboTax online use these directions:

You should be signed in and working in TurboTax
Click on Federal in the left-hand black menu
Then click on Deductions and Credits
You may have to click on More Deductions and Credits
Scroll down to Education, click on Show More
Click on Expenses and Scholarships (1098T)
A couple of screens in click Add a Student
Answer the questions on the following screens until you come to Your Education Expenses Summary
Next to the name of the student, click on Edit
Next to the name of the school click Edit

For more information about Education expenses and credits click here.

@wintergirl123

Re: If your taxable scholarship amount was not reported on a...

alih26 — Sun, 11 Apr 2021 20:25:46 GMT

I am really confused because I entered information into this form earlier today, where I subtracted box 1 from box 5 on my 198 T form, but I think I did that calculation wrong. Now when I go back, I can't find where that is located it just tells me I don't qualify... but when I preview my 1040 in TT it shows scholarship income, so now I am really confused about where this income was entered!