reporting item from w2 box 14

[jsspbusiness]

Our daughter received a scholarship award from my wife's employer for part of her college tuition; and they listed the amount in box 14 of her W2. They also took taxes out for the award. Where and how do we report the number?

[KrisD15 · Accepted solution]

Box 14 on a W2 does not report tax information, it is used by the company and their payroll department. 

An employer may gift education assistance up to 5,250 with it being tax free to the student. That's why it's in Box 14, it should have no affect on the student's tax return. 

IF you are reporting any education expenses for the student ( in order to apply for an education credit ), you must subtract the amount of the assistance from the expenses paid. TurboTax will ask for this information when you proceed through the education section interview to enter the additional expenses. 

If the education assistance is listed on the W2 in Box 14, and no other education expenses were paid, (therefore you are not reporting any additional costs on your tax return) you may simply enter the W2 and move forward. If tax was withheld on that amount, that tax will be included in Box 2 which IS tax information the program uses. The student's tax should be computed on the amount in Box 1, not including the amount in Box 14, thereby leaving the amount in Box 14 tax-free. 

[jsspbusiness]

I think I understand what your saying and we just need to show it as reported in box 14, but let me reiterate the items just to verify we're doing the right thing and won't be flagged for audit.

Our daughter got an education assistance award from my wife's company.

The amount was reported in box 14 of my wife's w2 with a code that has no official description.

We are not filing for an education credit this year since our daughter is filing on her own, and we paid no other education expenses.

The company took out taxes for the amount reported.

So from the description in your last paragraph, we do not need to declare it under "other reportable income" in the Miscellaneous Income section of turbotax, and our daughter does not need to show it at all on her return.

Do I have  this correct?

[DMarkM1]

That is correct. With no other education expenses, you just enter your W2 information in the "Job (W2)" topic.