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If you, your spouse, or your dependent had education expenses or received scholarships, fellowships, or grants and did not receive Form 1098-T Tuition Statement, 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. 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 Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Education in the Federal Quick Q&A Topics menu to expand, then click Student Worksheet (tuition, scholarships).
  3. Click + Add Student Information to create a new copy of the form or click Edit to review a form already created.
  4. Select from the Student drop-down, then click Continue.
  5. On the screen titled Student Information - Education Expenses, enter the tuition and fees not entered on Form 1098-T and/or the course materials, then click Continue.
  6. On the screen titled Student Information - Education Assistance, enter the amounts of any education assistance monies received (such as scholarships, grants, VA benefits, etc.), then click Continue.

If your scholarships, fellowships, and/or grants are more than the qualified education expenses, this is considered income - which 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 Form 1040 U.S. Individual Income Tax Return.

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

To enter the scholarship income in the TaxAct program:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Education in the Federal Quick Q&A Topics menu to expand, then click Student Worksheet (tuition, scholarships).
  3. Click + Add Student Information to create a new copy of the form or click Edit to review a form already created.
  4. Select from the Student drop-down, then continue with the interview process to enter all of the appropriate information.
  5. On the screen titled Student Information - Education Assistance, enter the amounts of any education assistance monies you may have received (such as scholarships, grants, VA benefits, etc.), then click Continue.

Taxable scholarship income will be included on Form 1040, Line 1. When you print the return, you will see the text "SCH" and the amount printed next to Line 1.

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.


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