This is the first year my daughter is in school. She received a 1098T from her university listing the amount billed as her scholarship amount.
Does this need to be reported anywhere? Is the scholarship amount considered income?
Thanks,
Reporting 1098-T Educational Expenses?
Feb 24, 2011
3 Replies
Scholarships, grants and financial aid that does not have to be paid back (its not a loan) that is not spent on qualified higher educational expenses is taxable income to the student. It gets entered on Line 7 of the student's 1040 coded as SCH.
On the other side... if it is spent on educational expenses, is that reported anywhere?
The taxpayer is obligated to keep track of the ins and outs (Scholarships/Grants In, Qualified Expenses Out). If there is an excess of scholarship money, you report it as income. If there is an excess of spending, then pick the applicable higher ed tax benefit (See IRS Pub
970) to enter on your tax return.Join the Discussion
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