Duplicate Question

[MHSD36]

Duplicated of https://ttlc.intuit.com/community/tax-credits-deductions/discussion/should-i-amend-my-filing-as-i-ha...

Sorry unable to delete it. 

[Vanessa A]

The amount of the scholarship that was used for education expenses would not be taxable income as these would be qualified education expenses. 

Any amount not used for education would be taxable income and you would report it as other income.

It would not be reported on form 2555 because it is not earned income, it is unearned income which is taxed at ordinary income rates. 
 

[MHSD36]

Thanks, I understand now. In my later research (I'm a newbie), it looks like the scholarship should have been reported on Schedule 1, line 8r (other income/non-W-2 scholarship). I'm not sure if TurboTax could have handled that properly. I'm thinking about amending it through TurboTax if possible, but I'm still unsure how to move forward plus it probably should reflect in the state/city tax as well similarly.

[Vanessa A · Accepted solution]

Yes.  TurboTax can handle it properly.  If you amend through TurboTax if you filed through another company, you will need to enter everything in the return as it is now, BEFORE you hit the amend. 

Also, depending on how you have it entered, it may not have any affect on your return, so you would not need to amend it.  

To amend this in TurboTax after entering everything else you will select the following:

1. Other Tax Situations
2. Amend your return
3. Watch the numbers zero out
4. Deductions and Credits
5. Education Expenses
6. Walk through all the questions skipping or saying no to the 1098-T until you get to Did you receive a Scholarship or Grant in 2024, here you will answer yes.  You can then enter the scholarship amount that was used for things other than qualified education expenses.