Last year, I received scholarships totaling up to $12,923, but tuition and related expenses only cost $6469.14 resulting in my receiving a refund from the university of $6453.86. I know this is considered taxable income, but the only place to input my 1098-T form is in the education/deductions area and not in the income area and Turbo Tax is not adding the difference to my income. How do I report the remaining $6453.86 as income in turbo tax? I am not seeing a way to add income without inputting a form (I only have the 1098-T, which isn't an option to choose from in the income area, but I don't have anything else). Is there some other form that the University should have sent me? Is there some other form I have to fill out?
I am self-employed, mostly paid in cash/check, and also had a contractor position that gave me a 1099-NEC to file with.
Also, I'm using the "premium" online edition of turbo tax, but for some reason that's not an option to select in the post
When you enter the 1098-T and the scholarships in Box 5 amounts to 6453.86 more that the payments/expense amount listed in Box 1, the software will compute the difference as income and list it on your Schedule 1 line 8r.
The amount from Schedule 1 flows to your 1040 line 8.
Be sure to answer the interview questions correctly and do not indicate that the scholarship was used for a previous year.
Schedule 1 also calculates Self-Employment income and loss, so the scholarship income may be eliminated by a business loss or added to business income. The single amount of the scholarship income (by itself) will not show on your 1040.
You should look at your Schedule 1 line 8r.
Oh, ok. I think I may have gotten confused by my taxable income vs my total income and was thinking it hadn't added the income to my taxes because the numbers did not add up to the right total. And I thought it had to be added to the income section of the software (I was finishing up at 11pm last night so that's probably why lol.)
I am seeing now as I look at the review that it is showing that extra $6k as additional income. I just wasn't seeing the breakdown of taxable income before, only the total, which didn't sound right, but is for total taxable income.
Thank you for your help!