Scholarships and Grants
Menu Path: Income > Common Income > Wages (W-2)
- or -
Menu Path: Income > Uncommon Income > Other Income
Scholarships are usually not taxable income. Scholarships and grants are not taxable if used for tuition, fees, books, supplies, or equipment required for your classes at a qualified school. If a scholarship or grant is taxable, you will generally receive a W-2 with the taxable amount on it. If you didn't receive a W-2, enter the amounts you used for expenses other than tuition, required fees, books, supplies, and equipment. For example, amounts used for room, board, and travel are taxable income.
If the scholarship or grant is taxable and reported on Form W-2, then it will be entered as a regular W-2 on the Wages (Form W-2) screen.
If the scholarship or grant is taxable and not reported on Form W-2, then it will be entered on the Other Sources of Income screen.
In rare circumstances, you might receive a Form 1099-G with taxable scholarship income and corresponding federal tax withheld. Enter this on the Other Sources of Income screen.
- or -
Menu Path: Income > Uncommon Income > Other Income
Scholarships are usually not taxable income. Scholarships and grants are not taxable if used for tuition, fees, books, supplies, or equipment required for your classes at a qualified school. If a scholarship or grant is taxable, you will generally receive a W-2 with the taxable amount on it. If you didn't receive a W-2, enter the amounts you used for expenses other than tuition, required fees, books, supplies, and equipment. For example, amounts used for room, board, and travel are taxable income.
If the scholarship or grant is taxable and reported on Form W-2, then it will be entered as a regular W-2 on the Wages (Form W-2) screen.
If the scholarship or grant is taxable and not reported on Form W-2, then it will be entered on the Other Sources of Income screen.
In rare circumstances, you might receive a Form 1099-G with taxable scholarship income and corresponding federal tax withheld. Enter this on the Other Sources of Income screen.
