Where do I enter scholarship income?

[Bayu]

I filed my daughter's 1098T in my return (not hers).

Same case as yours, there's an excess between box 1 and 5 and I use them as "to pay room and board".

Now  in my daughter's return, where and how in TT that she should put that taxable excess as income?

Thanks.

[LinaJ2020]

You will enter the Form 1098-T information on her return.  If you are referring to claim one of those educational tax credits, room and board are not considered as qualifying expenses.  Therefore, the excess scholarship portion is a taxable transaction.  You would simply enter the Form 1098-T on her return.  If your daughter meets the filing requirements, she would pay taxes on it.   

@Bayu

[wintergirl123]

That worked for me in 2019, but not for 2020. If I answer the interview questions, I still don't get where I need to to report the scholarship info.

[DeanM15]

To enter your 1098T and scholarship information in TurboTax online use these directions:

• You should be signed in and working in TurboTax
• Click on Federal in the left-hand black menu
• Then click on Deductions and Credits
• You may have to click on More Deductions and Credits
• Scroll down to Education, click on Show More
• Click on Expenses and Scholarships (1098T)
• A couple of screens in click Add a Student
• Answer the questions on the following screens until you come to Your Education Expenses Summary
• Next to the name of the student, click on Edit
• Next to the name of the school click Edit

For more information about Education expenses and credits click here.

@wintergirl123

[alih26]

I am really confused because I entered information into this form earlier today, where I subtracted box 1 from box 5 on my 198 T form, but I think I did that calculation wrong. Now when I go back, I can't find where that is located it just tells me I don't qualify... but when I preview my 1040 in TT it shows scholarship income, so now I am really confused about where this income was entered!

[MayaD]

You don't need to make the calculation. Enter the amounts as it is reported on form 1098-T in TurboTax, if box 5 exceeds box 1, TurboTax will treat the difference as taxable income, unless you enter additional qualified educational expenses.

To adjust your entries:

• Login to your account.
• Select Federal from the left menu.
• Go to Deductions and Credits.
• Scroll down to Education.
• Select revisit next to Expenses and Scholarships (Form 1098-T)
• On the screen Your Education Expenses Summary select Edit next to your name
• Select Edit next to the school name.

[alih26]

@MayaDThank you so much!!! I was baffled about how to do that.

So now I am looking at it properly and what I did was subtract box 1 from box 5 and entered this amount in the Turbo Tax prompt that said Enter the Amount You Recived Other  Scholarships/Grants/ Fellowships.

But was I supposed to just enter Box 5 here (reflecting the Scholarships and Grants) and then Box 1 will come into play later? When I enter the box 5 amount here, the next question is asking is any of this not designated for 2020 expenses. I am not really sure what this amount would be. (is this amount supposed to be box 1?!) If it helps, box 7 on my 1098 T is checked, indicating that the amount in box 1 included amounts for an academic period beginning Jan-March 2021.

Thank you for everyone's patience, I am really appreciative of your time 🙂 I couldn't have filed my taxes this year if not for the helpful questions posed by others and responses from those in this community.

[DaveF1006]

It depends. First of all, you shouldn't be doing any subtracting or calculation on your own.  If you put in the numbers in Box 1 and 5 of your 1098T, Turbo Tax will do all the necessary calculations. 

If you have more Scholarship money than expenses, you can adjust the money in accordance with the questions in the interview. When you get to the Education Summary page, click on Scholarships.

1. It will ask if you received a scholarship or grant, here if the amount in box 5 appears in this statement, press continue.  Don't answer any other questions.
2. Next question asks, if any of the scholarship money includes amounts not awarded for 2020 expenses. This you would need to find out from the school or if there is a supplementary disclosure statement included with the 1098T. if you can't find out any information, just say no. Tis is immportant 
3. Next question asks if you paid room and board with the scholarship money.  if you say yes, this will reduce the taxable income from the excess  amount  of the scholarship, if this pertains in your case.

[wintergirl123]

Thanks everyone. I got it worked out.