topic Student Financial Aid in Get your taxes done using TurboTax

Student Financial Aid

Rathballylong — Mon, 06 Apr 2020 19:40:44 GMT

Last year with professionally filed taxes my financial aid (1098-T) was not included in my taxable income. When I filed with Turbotax the financial aid is included (1040 line 1). Please advise if FAFSA should be included or how do I exclude it?

Re: Student Financial Aid

KrisD15 — Mon, 06 Apr 2020 22:09:47 GMT

If box 5 on the 1098-T (Scholarships) is less than Box 1 (Tuition paid) you would not have taxable income UNLESS the program used some of the expenses for an education credit and the credit is more than the tax.

Please look to see if you received a education credit. That would be on Form 8863, and flow to Schedule 3, and then to your 1040 line 13b and/or line 18c depending on which credit it is.

Are you using TurboTax Online or Desktop?

Re: Student Financial Aid

Rathballylong — Mon, 06 Apr 2020 22:14:25 GMT

Thanks for the reply.

I'm using TurboTax online.