Scholarship, fellowship or
grant money
, if not used for qualified education expenses is taxed as
income and belongs on Form 1040 Line 1 with SCH in front of the line number.
To enter scholarships,
grants, stipends (With or without a 1099-MISC form):
- On the left
side navigation bar, click on Federal.
- Click on
the Deductions & Credits tab.
- Scroll down
to Education (if Education is not there, click on Check
for more tax breaks).
- Select Expenses
and Scholarships (Form 1098-T).
- On
the Do you want to enter your higher education expenses? screen,
select Yes.
- Continue
with the onscreen interview until you get to the Scholarships and
Financial Aid screen.
-
Enter your
scholarship.
- Continue
with the onscreen interview until complete.
Related information: