Level 3

Question

Scholarships showing up as taxable

Forum|Forum|6 years ago
March 7, 2020
2 replies
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Client graduated from a 4 year college with a degree in May 2019. She received a 1098-T for tax year 2019 showing $575 in Box 1 (Payments Received) and $14,915 in Box 5 (Scholarships).

Because she was a full time student at a qualified educational institution this scholarship should not be taxable. But the difference between Box 1 and Box 5, which is $14,340, is showing up in line 1 of her 1040.

I have marked all the appropriate boxes but I'm unable to get the scholarship money from showing up as taxable.

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Level 13

Although the 1098T might be incorrect, you have to find out.

The form you have says her total tuition was 575 but she received 14915. That says it was taxable.

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Intuit Community Champion

Intuit Community Champion

What did the rest of the scholarship money get used for?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

OblioAuthor

Level 3

Her final spring semester (January - May 2019) of school.

Intuit Community Champion

Intuit Community Champion

Did she already take credit for that tuition in the prior year?

I think you need last years return and the bursars statement for both years to see what was paid and when.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪