I received a 1099-MISC form for a scholarship. Do I need to report this? I was under the impression that scholarship money is generally not taxable.

[SweetieJean]

Who gave you the scholarship?  Someone other than the school, such as a civic organization?

[SweetieJean]

<a rel="nofollow" target="_blank" href="http://www.finaid.org/scholarships/taxability.phtml">http://www.finaid.org/scholarships/taxability.p...>

[SweetieJean]

<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/2443834-scholarship-reported-on-1099-misc">https://ttlc.intuit.com...>

[nmolinajr]

Thanks. It was a scholarship foundation.

[Carl]

What box on the 1099-MISC is the income reported in?\
Understand that all scholarship money is "INITIALLY" reported as the taxable income it is. It's taxability is offset by the "qualified" education expenses it is used to pay for. Any scholarhip monies not used for qualified expenses is taxable income to the recipient.

[nmolinajr]

It is found on Box 3 "other income" -- as mentioned earlier, the scholarship was provided by a scholarship foundation. Thank you.

[Opus 17]

Scholarships are only tax-free up to the amount of qualified education expenses (tuition plus certain other required expenses).  If this scholarship is less than your tuition, it is tax free.  There are a couple of ways to handle it in turbotax, I don;t have them at the top of my head but @Carl can probably tell you.

[Carl]

Enter the 1099-MISC under the Personal Income tab. I think it's in the Other Common Income section. It's IMPORTANT you pay attention to detail and read each screen. Otherwise, you'll miss it and it will be treated as self-employment business income and you'll be taxed on it at a higher rate.
You'll deal with the deductibility of it from your taxable income in the Education section, when you get to it.

[nmolinajr]

Hi Carl -- thanks. As I was searching through this, I noticed a link that SweetieJean pointed me towards. In that post, I am assuming you wrote the following: "Don't enter that 1099-MSIC anywhere, except in the education expenses section under the Deductions & Credits tab. As you work through the education expenses, you'll enter it where it asks for scholarships/grants not reported on the 1098-T. The taxability of it will be offset by "qualified" education expenses. "

My taxability remains unaffected if I report that 1099-Misc under the "scholarships/grants not reported on the 1098-T."

Should I do that instead? Thanks.

[nmolinajr]

I also found this from TurboTax:

<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/2105653-1099-misc-scholarship-in-box-3">https://ttlc.intuit.com/qu...>


You would need to enter the 1099 misc under the Education section as a 1098-T for scholarships. To enter the information please do the following:-
Log into your TurboTax account
Click Personal on the left
Click Deductions & Credits
Click I'll choose what I work on
Scroll down to Education
Click Start next to Expenses and Scholarships (Form 1098-T)

 Enter the information until you reach a page Did You Receive a 1098-T in 2013?
Click No and click continue
Here enter all the information until you reach Scholarships and Financial Aid click continue

[SweetieJean]

@Carl You did say that in that link.

[Carl]

If I recall correctly, I think TT 2015 now has a question in the education section that asks if your scholarship is reported to you on a 1099-MISC. If so, then of course, answer that question affirmatively. I would "expect" the program to then tell you to enter it where I said to above. But I'm not sure, as it's been a few years since my last kid finished college. Let me know.

[TaxGuyBill]

I'm not familiar with the interview questions, but that sounds like how you need to enter the scholarship.

HOWEVER, the IRS will still be 'looking' for the 1099-MISC elsewhere, usually on Line 21 ("other income").  I would ALSO report it there, then enter it again as a negative number so it effectively cancels out the first one.  That way the IRS will 'see' it reported on Line 21.  Again, I'm not too familiar with the navigation of TurboTax, but this link may help you figure out how to do that.
<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/2253986-how-do-i-claim-my-1099-misc-box-3-other-income-more-expens...>

[Carl]

Bill, read the final commet in your referenced thread. 🙂 I'm stilling looking for my boiler on entering a 1099 that is not self-employment income. When I find it, I'll post it in this thread.