Wages on W-2 and 1040 do not add up

[cshieb]

how did the numbers change and how do I fix in order to apply for financial aid

[SweetieJean · Accepted solution]

Any letters on line 7 of Form 1040, such as SCH?  That means a taxable scholarship.

[cshieb]

Thank you SweetieJean. I didn't have what you stated, but used the information to find my way. I found and remembered a P code in block 12 which is a taxable advance income.

[SweetieJean]

Actually, P is excludable moving expense reimbursements paid directly to employee (not included in boxes 1, 3, or 5).

[TaxGuyBill]

@SweetieJean   Unless/until the user tells TurboTax that they actually HAD qualified moving expenses, TurboTax adds the amount from code P to taxable income.

[cshieb]

@TaxGuyBill And that is what happened.

[VolvoGirl]

Did you get any 1098 forms?  SCH by 1040 line 7 or 1 Wages is taxable scholarship income and then the amount.
See FAQ https://ttlc.intuit.com/questions/2172062-why-is-my-scholarship-taxable

and how Turbo Tax calculates line 7
https://ttlc.intuit.com/questions/1901084-how-does-turbotax-calculate-line-7-form-1040-1040a-and-lin...
 
Taxable scholarship is any grant or scholarship amount that exceeds qualified educational expenses (tuition, fees and for undergrads, course materials[books]). Loans are not scholarships and are never taxable