Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
djb2155
New Member

In Box my Form1098-T shows $51,563.50 in Box 2 and $70,597.00 in Box 5. How do i treat the $19,033.50 difference?

In Box my 2017 Form 1098-T shows $51,563.50 in Box 2 and $70,597.00 in Box 5. How do i treat the $19,033.50 difference?

1 Best answer

Accepted Solutions
DianeW
Expert Alumni

In Box my Form1098-T shows $51,563.50 in Box 2 and $70,597.00 in Box 5. How do i treat the $19,033.50 difference?

As you go through the entry of your Form 1098-T, TurboTax will ask the questions about your scholarship income that is in excess of your educational expenses. Grants and /or scholarships are taxable income only to the extent that they exceed qualified educational expenses to include tuition, fees, books, and course related materials. 

If your qualified expenses exceeded your grants and scholarships, you have no taxable income.  

IRS: Reporting Scholarships and Fellowship Grants (Publication 970-Tax Benefits For Education)

Whether you must report your scholarship or fellowship grant depends on whether you must file a return and whether any part of your scholarship or fellowship grant is taxable.

If your only income is a completely tax-free scholarship or fellowship grant, you don't have to file a tax return and no reporting is necessary. If all or part of your scholarship or fellowship grant is taxable and you are required to file a tax return, report the taxable amount as explained below. You must report the taxable amount whether or not you received a Form W-2. If you receive an incorrect Form W-2, ask the payer for a corrected one.

There is a great article about how to treat this income. It's detailed, but check the sections that pertain to your specific situation. Click the images to enlarge and view for assistance.

https://ttlc.intuit.com/replies/4263828

View solution in original post

1 Reply
DianeW
Expert Alumni

In Box my Form1098-T shows $51,563.50 in Box 2 and $70,597.00 in Box 5. How do i treat the $19,033.50 difference?

As you go through the entry of your Form 1098-T, TurboTax will ask the questions about your scholarship income that is in excess of your educational expenses. Grants and /or scholarships are taxable income only to the extent that they exceed qualified educational expenses to include tuition, fees, books, and course related materials. 

If your qualified expenses exceeded your grants and scholarships, you have no taxable income.  

IRS: Reporting Scholarships and Fellowship Grants (Publication 970-Tax Benefits For Education)

Whether you must report your scholarship or fellowship grant depends on whether you must file a return and whether any part of your scholarship or fellowship grant is taxable.

If your only income is a completely tax-free scholarship or fellowship grant, you don't have to file a tax return and no reporting is necessary. If all or part of your scholarship or fellowship grant is taxable and you are required to file a tax return, report the taxable amount as explained below. You must report the taxable amount whether or not you received a Form W-2. If you receive an incorrect Form W-2, ask the payer for a corrected one.

There is a great article about how to treat this income. It's detailed, but check the sections that pertain to your specific situation. Click the images to enlarge and view for assistance.

https://ttlc.intuit.com/replies/4263828

Dynamic AdsDynamic Ads
Privacy Settings
v