I received a 1099-MISC for a scholarship I received that was used for eligible education expenses for past years. Do I need to enter this in the 1099-MISC section or in the educational expenses section where the 1098-T info was entered?
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IRS Definition of Taxable Scholarships:
You must include in gross income:
If it is earned income, it should be w-2 income. Examples for teaching a class. But if amount is on 1099Misc in box 7 , then report it as a 1099Misc during the interview. Then enter education expenses in the 1098-T interview and do not consider it scholarship income when you enter your education expenses, it is taxable but your education expenses would reduce your tax liability and allow any education credits (if you enter the scholarship amount here see screenshot, if earned then do not enter as scholarship here, you would be double counting it so for amounts in box 7 do not report under the education interview as you already have it as earned income). If the money is earned income and you have dependents, you may also qualify for EITC.
REPORT 1099-MISC
IF box 3 reports, report the form:
STEP 1 (step 1 and 2 are optional to make it clear):To enter/edit a 1099-MISC form:
STEP 2 (step 1 and 2 are optional): and make adjustment using the steps below:
IRS Definition of Taxable Scholarships:
You must include in gross income:
If it is earned income, it should be w-2 income. Examples for teaching a class. But if amount is on 1099Misc in box 7 , then report it as a 1099Misc during the interview. Then enter education expenses in the 1098-T interview and do not consider it scholarship income when you enter your education expenses, it is taxable but your education expenses would reduce your tax liability and allow any education credits (if you enter the scholarship amount here see screenshot, if earned then do not enter as scholarship here, you would be double counting it so for amounts in box 7 do not report under the education interview as you already have it as earned income). If the money is earned income and you have dependents, you may also qualify for EITC.
REPORT 1099-MISC
IF box 3 reports, report the form:
STEP 1 (step 1 and 2 are optional to make it clear):To enter/edit a 1099-MISC form:
STEP 2 (step 1 and 2 are optional): and make adjustment using the steps below:
Since the 1099-MISC was for an eligible scholarship and since you have entered
education expenses in your return in prior years, you should declare this in
the Education section of TurboTax as a scholarship. Even if you have no
education expenses in your 2015 return, you should still use this approach. TurboTax will include this data in Line 7 of
your Form 1040
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