Oblio
Level 3

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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