1098-T & CARES Act scholarships

Forum|Forum|4 years ago
March 14, 2022
1 reply
16 views

Taxpayer is a full-time graduate student. 1098-T shows payments received (Box 1) $5,785. Scholarships or grants (box 5) is $10,550. So program is picking up $4,765 as taxa ble income. $1,000 of scholarships was a CARES payment direct to school. I read that theses CARES pyaments are not taxable? If so how do I show it? Can I take some expenses against the taxable part since it was used for room & board and books, etc?

Lacerte Tax

This topic has been closed for replies.

Best answer by ungvarys

Ty! Exactly what I was thinking. 😊

T

TaxGuyBill

Level 15

Books and other similarly required supplies can offset the taxable scholarships. Room and board can not.

For the $1000 non-taxable scholarship, have you confirmed that Box 5 includes that amount? Those non-taxable scholarships are NOT required to be listed in Box 5, so you need to confirm if it is actually in Box 5 or not.

If that non-taxable scholarship is in Box 5, I would consider adding $1000 of extra 'books' to make effectively make it non-taxable.

U

ungvarysAuthorAnswer

Level 2

Ty! Exactly what I was thinking. 😊

Sign up

Login with SSO

Let's get you signed in

Login with SSO