1099 NEC For Education Grant

[joetown2001]

My wife is in a Education Leadership Masters Program at High Point University. She recieved a 1099 NEC from High Point for $8500.00. For her program, she recieved checks from High Point University every month and then had to endorse them over to the university. She also recieved a 1098 T from the University for $6800.00 paid in tuition. How should this 1099-NEC be entered on my return so we dont get hammered for taxes as income, when this was not income, it was the FACTS grany that paid for the program. Thank you @Hal_Al 

[MarilynG1]

When entering her 1098-T in the Education Section, with a Tuition amount in Box 1 of $6800, indicate in the additional questions that she received Grants/Scholarships in the amount $8500.

If she has additional Qualified Education Expenses not included in the tuition amount, be sure to add those.

The balance of the scholarship income over the total expenses will flow to Other Income on your return, with the notation SCH.

Here's more discussion on Received 1099-NEC for Grant.

@joetown2001