My income is considered "non-qualified tuition or scholarship." How do I list this w/o a W2? I believe that there is a different tax rate for this sort of income.

[KrisD]

Taxable scholarship is reported on line 7 of your 1040 or 1040A .

According to the IRS:

"Generally, you report any portion of a scholarship, a fellowship grant, or other grant that you must include in gross income as follows:

• If filing Form 1040 (PDF), Form 1040A (PDF), or Form 1040EZ (PDF), include the taxable portion in the total amount reported on the "Wages, salaries, tips" line of your tax return. If the taxable amount wasn't reported on Form W-2, enter "SCH" along with the taxable amount in the space to the left of the "Wages, salaries, tips" line. If filing Form 1040NR (PDF) or Form 1040NR-EZ (PDF), report the taxable amount on the "Scholarship and fellowship grants" line."

To enter in TurboTax:

To report the scholarship as income on the student's return, please follow the instructions below. The income will be reported as earned income on 1040 line 7 or 1040A line 7 or 1040EZ line 1.

Sign into your account

Take me to my return

Pick up where I left off

Click open the search box

Type   education expenses   into the search box

Click "Jump to education expenses"

OR 

Click Federal Taxes 

Click Deductions & Credits

Scroll down to "Education"   Show more

"Expenses and Scholarships (Form 1098-T)"   Start

NEXT 

You will need to walk through interview screens.

Answer "No" to getting a 1098-T since the student does not report this form.

Do not report any payments billed or paid.

When you get to the screen that asks "Did You Receive a Scholarship or Grant...?" Answer "Yes" and a drop down will open.

Enter the amount. 

(see screen shots below)

The amount of the scholarship will be added to line 7 with a SCH note.

[Human]

This information needs to be updated.

Line 7 of the 1040 is now devoted to capital gains (or loss).

And why doesn't Turbo Tax allow users to write "SCH" in line 1, as the IRS instructions describe?

[KrisD15]

This year, all the Taxpayer needs to do is enter the amount in the Education section and it will be reported on the 1040 Line 1 with SCH on the line. 

If this is a dependent student, they do not enter the 1098-T, only the amount of scholarship they need to claim. 

The Education section is located under "Deductions & Credits". 

@Human

[b03jka]

I am trying what KrisD15 is suggesting, for reporting a taxable grant for a dependent. I entered the amount as "Scholarships/Grants" under Deductions & Credits/Educational Expenses/Expenses and Scholarships, but it's not showing up in line 1, with the SCH annotation.  This taxable grant is the reason for filing in the first place. If it's not showing up as wages, TurboTax is not calculating any tax.

@KrisD15 - do you have any suggestions?

[b03jka]

@KrisD15 - never mind, I figured it out.  One of the questions related to Scholarships/Grants needed to be answered differently.