Is my scholarship or grant taxable?
Scholarships and grants aren't taxable if you use them for tuition, fees, books, supplies, or equipment required for your classes at a qualified school.
If your total scholarships and grants are more than your total qualified education expenses, the scholarships and grants that exceed your education expenses are taxable. For example, if your total scholarships and grants are $10,000 and your total education expenses are $8,000, then $2,000 ($10,000 - $8,000) of your scholarships and grants is taxable. In this scenario, you could benefit by allocating some of your scholarships or grants to room and board, which still includes it in income, but could qualify you for the education credits.
If a scholarship or grant is taxable, you'll usually get a W-2 showing the taxable amount. If you didn't get a W-2, just enter the amounts you used for expenses other than tuition and course-related expenses. For instance, amounts spent on room, board, and travel count as taxable income.
If you received a Form 1098-T, you may qualify for an education credit. You'll enter the amount in Box 5 on the College Tuition Expenses (Form 1098-T) screens (Menu Path: Deductions/Credits > Common Deductions/Credits > College Tuition (1098-T)).
If you didn't receive a Form 1098-T or don't qualify for an education credit, you should enter your taxable scholarships on the Other Sources of Income screen (Menu Path: Income > Uncommon Income > Other Income).
Money received for post-doctoral fellowships or stipends are typically considered taxable if you're not a candidate for a degree.
How do I report fellowship grants that aren't on a Form W-2?
If your total scholarships and grants are more than your total qualified education expenses, the scholarships and grants that exceed your education expenses are taxable. For example, if your total scholarships and grants are $10,000 and your total education expenses are $8,000, then $2,000 ($10,000 - $8,000) of your scholarships and grants is taxable. In this scenario, you could benefit by allocating some of your scholarships or grants to room and board, which still includes it in income, but could qualify you for the education credits.
If a scholarship or grant is taxable, you'll usually get a W-2 showing the taxable amount. If you didn't get a W-2, just enter the amounts you used for expenses other than tuition and course-related expenses. For instance, amounts spent on room, board, and travel count as taxable income.
If you received a Form 1098-T, you may qualify for an education credit. You'll enter the amount in Box 5 on the College Tuition Expenses (Form 1098-T) screens (Menu Path: Deductions/Credits > Common Deductions/Credits > College Tuition (1098-T)).
If you didn't receive a Form 1098-T or don't qualify for an education credit, you should enter your taxable scholarships on the Other Sources of Income screen (Menu Path: Income > Uncommon Income > Other Income).
Money received for post-doctoral fellowships or stipends are typically considered taxable if you're not a candidate for a degree.
How do I report fellowship grants that aren't on a Form W-2?
