1099-NEC for scholarship that was used for tuition

I received a scholarship from my summer employer, which was reported on a 1099-NEC. I used the full scholarship amount for tuition, and the amount did not exceed the amount listed on box 1 of my 1098-T. It is my understanding that scholarship money that is used for tuition is not taxable.

Can I simply enter the scholarship amount under "Other Scholarships/Grants/Fellowships" in the "Deductions & Credits" section, or will the 1099-NEC require a different workaround?

Thank you so much in advance!

191

Expert Alumni

Feb 9, 2024 3:04:21 PM

Yes, i would enter this under Other Scholarships/Grants/Fellowships" in the "Deductions & Credits" section. In this section, there will be a question that asks you if your scholarships was not designated to pay 2023 educational expenses and here you would say no. This will then exclude this amount from income.

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1099-NEC for scholarship that was used for tuition