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Your Life

Major life milestones often have a major tax impact. Changes in your marital status, having a baby or adopting a child can have significant impact on your taxes. This is the place to ask questions about dependents, real estate, and other various scenarios that play a significant role in what taxes you pay.

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Posts: 1
Registered: ‎02-07-2018
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Need help reporting scholarship money for room and board on my H&R block software.

My twin daughters both started college this year and I am so confused what to do.  The first one received a 1098-T and her scholarship does not pay for all of her tuition and pays for none of her room and board.  I entered in the info on her on the credit area (think I did it all correctly)  and qualify for the tax credit. 

 

The other daughter took concurrent classes in the spring of 2017 and we received a 1098-T for it which I have entered.  Then in Fall she received a full ride scholarship covering all her costs including room and board.  This college did not send me a 1098-T (They said they would not send them since we are not eligible for the credit anyway.)   I did get the bursars to send me a list of all the costs broken down that was paid by her scholarship so I have the amount they paid for room and board for her. 

 

(I am claiming both girls on my taxes as dependents so her scholarship money should go on my return I believe)

 

My questions are as follows:

 

!.  After I enter the 1098-T for the concurrent classes it asks if she attended another college which she did but we didn't get a 1098 T and it doesn't qualify for credit anyway so do I just answer NO here or what do I do?

 

2.  Where do I enter in the amount of money she received for her scholarship.  I found a section that said scholarships under income but it asked if my husband and I had scholarship money?

 

3.  On both of their concurrent 1098-T the amount of payments minus scholarship is less than I actually paid to the school  do I adjust the amount in the box that says it might not be all I paid to  what I actually paid plus the amount they show as scholarship?

 

4.  She had a small amount of income this year too so will be filing a return.  She won't need to show any of this on her return since I am.   correct? 

 

Thanks in advance for your help.  I don't understand why this college stuff is so confusing.  You'd think it would be the same as getting a 1099 for services or a W-2.   I don't want to make a mistake reporting this and end up causing her problems down the road. 

Moderator
Posts: 68
Registered: ‎01-08-2018

Re: Need help reporting scholarship money for room and board on my H&R block software.

Hello jk1998!

 

Welcome to The H&R Block Community!

 

 

The following are the answers to each of your questions:

 

  1. When entering in the 1098-T forms, you are able select "No" to the question asking if the student attended another college in this instance.
  2. The taxable scholarship income should be included on your daughter's return, as she is the student that "earned" the income.
  3. You should not adjust the amounts listed on the 1098-T in the program, as the IRS receives a copy and may see that there is a discrepancy if anything is changed on your return. 
  4. She will claim the taxable scholarship income on her return, but you will include the 1098-T on your return if you are claiming her as a dependent.

The taxable scholarship income will be included as "Other Income" on your daughter's return. If she is using H&R Block's 2017 online program to complete her return, include this income by going to INCOME -- Employment, 1099-G and Freelance / Contract Income -- Taxable scholarships not on Form W-2 (Visit Topic). If she is using H&R Block's 2017 downloadable desktop software to complete her return, include this income by going to INCOME -- Other Income -- Scholarships -- Click "Next" until you reach the page titled "Scholarship Income."

 

 

If you have any further questions, I'll be happy to help!

 

Alex

Tax Research Specialist