dasnowball
Level 3
‎02-22-2023 12:44 PM

In the past excess scholarship funds have been shown along with wages on line 1 of the 1040.  For 2022 they are shown as "other income".  Is this correct or is there someplace to indicate they should be added to wages.  Thanks

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Just-Lisa-Now-
Level 15
Level 15
‎02-22-2023 12:56 PM

I never really understood why they would be on the wages line, therye not earned income.


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dascpa
Level 12
‎02-22-2023 01:22 PM

Not only are they earned income (yes they were (are>) for the standard deduction) as such it screws up the Kiddie Tax.

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IntuitCharlene
Moderator
Moderator
‎02-22-2023 01:59 PM

There was a change for tax year 2022 where the IRS added additional lines to the Schedule 1. This was one of the changes. See https://www.irs.gov/pub/irs-pdf/i1040gi.pdf page 6. 

• Scholarship and fellowship grants
that were not reported to you on Form
W-2 are now reported on Schedule 1,
line 8r.

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IRonMaN
Level 15
‎02-22-2023 05:17 PM

Based on all the questions that show up here every year, this also must be the first year that the IRS published instructions to go with the 1040.


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BobKamman
Level 15
‎02-22-2023 06:12 PM

It's not the first year that many preparers don't even look at the forms, much less the instructions.  

If the scholarship covers more than tuition and books, you know the kid is playing football, and earns every penny of it.  

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