My son has a scholarship. I entered this on my taxes as he is a dependent but it tells me that 5140 is income for him and needs to be entered on his taxes. Where do I?

[additional child tax credit]

Where do I post just that amount and not the entire scholarship form (and the entire scholarship) all over again?

[DianeW777]

Scholarships that pay for qualified educational expenses at qualified educational institutions generally don't count as taxable income. Scholarship funds received in excess of your qualified educational expenses may be taxable and might need to be reported in your taxable income.

This income is reported on your child's return.  It is not exempt.  Scholarships and fellowship grants are now reported on Schedule 1, line 8r (TurboTax will take it to the appropriate section of your return).  Your child would not qualify for EITC if they are your dependent.

There are no special deductions for the money even though it was used to purchase educational resources.  

How to report the income:  Updated

• To enter  scholarships, grants, stipends (With or without a 1099-MISC  or Form 1098-T):

  1. Click on the Deductions & Credits 
  2. Scroll down to Education (if Education is not there, click on Check for more tax breaks).
  3. Select Expenses and Scholarships (Form 1098-T).
  4. On the Do you want to enter your higher education expenses? screen, select Yes.
  5. Continue with the onscreen interview until you get to the Scholarships and Financial Aid screen.
  6. Enter your scholarship information on the 1098-T
  7. Continue with the onscreen interview until complete. 
• Preview My 1040:

  • Using the Tax Tools:

    • To find Tools: 
    • Sign into your TurboTax account and open or continue your return. 
    • Select Tax Tools in the left menu. 
    • You'll find Tools beneath Tax Tools.
    • Select View Tax Summary
    • Select Preview My 1040 (left)

@additional child tax credit 

[Edited: 02/20/2024 | 8:44 AM PST]          

[Hal_Al]

Q. Where do I post just that amount and not the entire scholarship form (and the entire scholarship) all over again?

A. On his tax return, enter the 1098-T with $5140 in box 5 and  $0 in box 1.  Do not enter any other amounts. The 1098-T is just an information document. The amounts you enter do not have to match the actual form. What you enter is not sent to the IRS, it is only used to do the calculations. 

If that is his only income, he is not required to file a tax return (it's less than $13,850).