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If your taxable scholarship amount was not reported on a Form 1098-T, you can see the steps for entering the scholarship amount into TurboTax is as follows:
How to enter a 1098T
After you enter your 1098-T, we'll ask about other expenses (books, supplies, equipment) and financial aid.
for the 2017 year, that happened to me as well.
I did not know it until the IRS came asking for a bunch of money.
Went through nearly a year of hell working with TaxAudit service (best advice - spend the $45 and sign up for it - well worth it) and reduced my fees, but I still ended up having to pay a fairly large chunk of change. Was not fun.
TurboTax did it for me when I was on my daughters return:
1. For the section: Education - Scholarships, student loans, tuition (1098-E and 1098-T)
--Go to Expenses and Scholarships (Form 1098-T) to enter your 1098T information.
--For question: "Did You Pay for Room and Board with a Scholarship or Grant?" - I answered "Yes" then entered the amount (in my case this was simply Box 5 minus Box 1 on the 1098T) in the field for "Total Used." **Only this section was needed for my tax situation; be sure to enter amounts, for the other questions re:scholarships/grants , that are specific to your tax needs.**
--Answer all other questions as appropriate to complete the section.
2. Expand the "Tax Tools" options located in the toolbar to the left (where you see Tax Home, etc).
3. Click "Tools" (a "Tool Center" window opens).
4. Under "Other helpful links", select "View Tax Summary".
5. The "Review Tax Summary" Opens.
6. In the left toolbar, you should see "Preview my 1040" - click to open.
7. You should now see the "Federal 1040" form.
8. Scroll down in the form and stop at: "Form 1040 or Form 1040-SR, Lines 1 - 6"
9. Line 1 Wages, salaries, tips, etc. Attach Form(s) W-2 should include an amount with "SCH" next to it.
TurboTax did it for me when I was on my daughters return:
1. For the section: Education - Scholarships, student loans, tuition (1098-E and 1098-T)
--Go to Expenses and Scholarships (Form 1098-T) to enter your 1098T information.
--For question: "Did You Pay for Room and Board with a Scholarship or Grant?" - I answered "Yes" then entered the amount (in my case this was simply Box 5 minus Box 1 on the 1098T) in the field for "Total Used." **Only this section was needed for my tax situation; be sure to enter amounts, for the other questions re:scholarships/grants , that are specific to your tax needs.**
--Answer all other questions as appropriate to complete the section.
2. Expand the "Tax Tools" options located in the toolbar to the left (where you see Tax Home, etc).
3. Click "Tools" (a "Tool Center" window opens).
4. Under "Other helpful links", select "View Tax Summary".
5. The "Review Tax Summary" Opens.
6. In the left toolbar, you should see "Preview my 1040" - click to open.
7. You should now see the "Federal 1040" form.
8. Scroll down in the form and stop at: "Form 1040 or Form 1040-SR, Lines 1 - 6"
9. Line 1 Wages, salaries, tips, etc. Attach Form(s) W-2 should include an amount with "SCH" next to it.
TurboTax did it for me when I was on my daughters return:
1. For the section: Education - Scholarships, student loans, tuition (1098-E and 1098-T)
--Go to Expenses and Scholarships (Form 1098-T) to enter your 1098T information.
--For question: "Did You Pay for Room and Board with a Scholarship or Grant?" - I answered "Yes" then entered the amount (in my case this was simply Box 5 minus Box 1 on the 1098T) in the field for "Total Used." **Only this section was needed for my tax situation; be sure to enter amounts, for the other questions re:scholarships/grants , that are specific to your tax needs.**
--Answer all other questions as appropriate to complete the section.
2. Expand the "Tax Tools" options located in the toolbar to the left (where you see Tax Home, etc).
3. Click "Tools" (a "Tool Center" window opens).
4. Under "Other helpful links", select "View Tax Summary".
5. The "Review Tax Summary" Opens.
6. In the left toolbar, you should see "Preview my 1040" - click to open.
7. You should now see the "Federal 1040" form.
8. Scroll down in the form and stop at: "Form 1040 or Form 1040-SR, Lines 1 - 6"
9. Line 1 Wages, salaries, tips, etc. Attach Form(s) W-2 should include an amount with "SCH" next to it.
did your daughter have work income too? or file her own return?
Yes - She had income from Work Study for which she received a W-2, since these earnings are not included on her 1098-T.
Yes - She filed her own return - I put the numbers in TurboTax to see how it looks, but her boyfriend temps for Jackson Hewitt during tax season, so I let him submit her return since he gets a free code for one friend/family, and it helps with his metrics.
I did remind him that she was a dependent and to report the same amount, in excess of qualified education expenses, as taxable income with the "SCH" designation as I did; as I know their system is different from TurboTax.
Outcome: per her boyfriend, her federal return was not impacted. Even with the SCH amounts, her total income was under the standard deduction and she is due a refund-- equal to the amount of federal income tax that was withheld.
It did, though, impact her state return. He said NC's standard deduction is lower, and her taxable income exceeded the amount. So she owes the state, but it's not a lot, and she can easily cover the balance from her federal refund.
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