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 in the upper left-hand corner, then click Federal.
- Click Education in the Federal Quick Q&A Topics menu to expand, then click Student Worksheet (tuition, scholarships).
- Click + Add Student Information to create a new copy of the form or click Edit to review a form already created.
- Select from the Student drop-down, 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.
- When you reach the screen titled Student Information - Education Assistance, enter the amount of the scholarship or fellowship in the applicable fields, then click Continue. (If you entered scholarship or grant information on the Form 1098-T, you will see that amount has been transferred to this screen.)
- 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 U.S. Individual Income Tax Return, Line 1. When you print the return, you will see "SCH" written next to Line 1 to indicate 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.
Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.