To enter your scholarship or fellowship income, please follow the steps below:
- From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal
- Click Education in the Federal Quick Q&A Topics menu to expand the category and then click Student Worksheet (tuition, scholarships)
- Click +Add Student Information to create a new copy of the worksheet or click Review to review a worksheet already created. (If you are entering student information for the first time, you will be prompted to select the applicable student from the drop-down menu after you click Add, then click Continue.)
- On the following screen, check all the applicable boxes for this student, then click Continue
- If the scholarship or grant amount is reported on Form 1098-T, click Yes on the screen titled Student Information - Form 1098-T. Otherwise, click No.
- Click Continue once to reach the screen titled Student Information - Education Assistance. (If you entered scholarship or grant information on the Form 1098-T, you will see that amount has been transferred to this screen.)
- Enter the amount of the scholarship or fellowship in the applicable fields, then click Continue.
- On the following screens, you will need to enter the portion of that scholarship income that was used for teaching, research, and other services.
Any amount not used for qualifying education expenses is considered taxable income on your return and will be included on Form 1040, Line 1. When you print the return, you will see "SCH" next to Line 1 indicating a portion of that total contains taxable scholarship income.
Please reference IRS Publication 970 Tax Benefits for Education for a definition of qualifying educational expenses or for other related information.