If you, your spouse, or your dependent had education expenses or received scholarships, fellowships, or grants and did not receive Form 1098-T, you may still need to report the amounts on your return.

If your expenses are more than your scholarships, fellowships, and grants, you may qualify for an education credit. These expenses need to be reported on the return that is claiming the student's exemption. If the student is not claimed as a dependent, he or she will report these expenses. If the student is a dependent on someone else's return, the person claiming the student as a dependent should report the expenses.

To enter education expenses:

  1. From within your TaxACT return (Online or Desktop), click on the Federal Q&A tab
  2. Click Education to expand the category and then click Student Worksheet (tuition, scholarships)
  3. Click Add to create a new student worksheet or click Review to review a student worksheet already created
  4. Continue to the screen titled Student Information - Education Expenses and enter the tuition and fees not entered on 1098-T and/or the course materials 
  5. On the following screen, you can enter the amounts of any education assistance monies you may have received like scholarships, grants, VA benefits, etc.

If your scholarships, fellowships, and/or grants are more than the qualified education expenses, this is considered income. This income needs to be reported on the student's tax return. The TaxACT program will automatically calculate the amount of taxable scholarships. If the taxable scholarship income belongs to either the primary taxpayer or the spouse, this scholarship income will automatically transfer to the Form 1040.

Conversely, if the scholarship income calculated belongs to the dependent/student, this income will need to be reported on their return.

If you are using the TaxACT program to prepare the dependent/student's return, you can enter the scholarship income as follows:

  1. From within your TaxACT return (Online or Desktop) click on the Federal Q&A tab
  2. Click Education to expand the category and then click Student Worksheet (tuition, scholarships)
  3. Click Add to create a new student worksheet or click Review to review a student worksheet already created
  4. Continue to the screen titled Student Information - Education Assistance

Taxable scholarship income will be included on Form 1040, Line 7. When you print the return, you will see the text "SCH" and the amount printed next to Line 7.



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