Taxable Scholarship Income not showing up on Line 1.

[Cyndi Thompson]

Dependent has 1098-T with taxable scholarship income.  I've entered the 1098-T and also completed the Student Information Worksheet. The taxable portion appears correctly on the worksheet, but does not show up on Form 1040, Line 1.   

I can't find anywhere else to enter it except for the 'other wages' screen as 'Other'. 

What am I doing wrong? 

[Terry53029 · Accepted solution]

 If student has required expenses I usually apply the excess to that, so there is no taxable income, if the scholarship allows that. If you have taxable scholarship on the 1040 line 1, click on the dotted line after W2, a box will pop up, click on magnifying glass, scroll down to line 13, and enter the taxable amount

[beylal]

This reply is to Terry.  How do you go about applying the excess scholarship to other college required expenses such as room and board?  I can't seem to make the taxable portion go away.

[Terry53029]

Are you sure that room and board is a requirement, as it is normally not, and if you use room and board, and it is not required it will be taxable. Normally expenses like  supplies that must be bought from school, books, computers, things like that. 

[Terry53029]

Forgot to answer where to put required expenses in addition to tuition. You would put them on "student info work sheet" part V, line 6

[beylal]

Thank you!  The scholarship is for all college expenses, including room and board, so I don't think any of it should be taxable.  It does work to put it on the line you suggested.  Thanks again!

[Donna1]

I have followed the instructions posted and when I scroll down to line 13, I have to override to get the taxable portion on that line. Can you offer further guidance as to why I would have to do this?

Thank you!

[Terry53029]

need more info to help, is student a dependent?, is this parents return? line 13 on what form?

[Donna1]

It is the parent's return. The student is a dependent. I was following the advice in this feed. The advice was to go to line one (wages, salaries, tips, etc.) and click on the dotted line. Click the magnifying glass and go to line 13 and enter the taxable portion there. In order for me to do that, I have to override that line.

[Terry53029]

You have to fill out the student info worksheet part V. that is where the taxable amount is calculated, and the amount on line 5 of part V is carried to 1040

[Donna1]

I did that and it shows the taxable amount, but it is not carrying to line one of the 1040? And it is on line 9 of the worksheet that shows the taxable amount. Line five shows the total scholarship amount.

[Terry53029]

You are correct it is line 9, and that is the amount you use for the students tax return. It is not taxable to parents.

[Donna1]

I guess I need to read the rules...

I don't need to do anything with it because it is not enough that would require the student to file a  tax return. Thanks!!

[SLValley]

Room and board are never non-taxable when reimbursed.  I've had quite a few in my family that got full ride scholarships.  Room and board are taxable.  My kids thought they were the only students in Division I schools that got that taxed.  Maybe so as nothing was reported in those days.

[SLValley]

But room and board are taxable!  😞