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Discussion:1099 Misc on a Scholarship

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Discussion Forum Index --> Advanced Tax Questions --> 1099 Misc on a Scholarship


Discussion Forum Index --> Tax Questions --> 1099 Misc on a Scholarship

Moon101 (talk|edits) said:

25 February 2011
I have a client that received an educational scholarship from “Corporation for National & Community Service.” She used the scholarship money to pay for tuition. The amount is shown in box 5 of the 1098-T.

The problem I’m having is that they also issued her a 1099-Misc for the same amount shown in box 5 of the 1098-T. The 1099- Misc is in the “other income” box.

Do I enter the 1099-Misc on the face of the 1040 and then back it out since it was used for tuition?

Moon101 (talk|edits) said:

26 February 2011
No takes on this one???

Nightsnorkeler (talk|edits) said:

26 February 2011
Pub 970: Scholarships, Fellowships, Grants, and Tuition Reductions

Sounds like you have a taxcable scholarship here. The taxpayer probably will have taxable income, but also could qualify for an education credit.

EZTAX (talk|edits) said:

26 February 2011
If she is a degree candidate and the money went to tuition or books then there is no taxable scholarship. Yes I would put it on line 21 and then back out with "less amount shown on form 1098T"

If I am understanding your question, you are trying to figure out how to account for the double reporting, not how to account for the actual amount of scholarship/tuition - taxable amount/credit issue.

Actionbsns (talk|edits) said:

28 March 2014
My client's daughter received $1174.60 in scholarship aid from this same organization. The actual program she was a part of is one of conservation in the Hawaiian Islands, it's called the KUPU Scholarship. She traveled with a group throughout the islands studying conversation, plants, the affects of environmental happenings. The funds were paid to the university, who then paid them to the KUPU program on her behalf. She has a 1099 in her name and it's the only income she has. She has a 1098-T which is not adjusted for scholarships received. I'm sure this is taxable income to her, but she has no other income in her name, so no reason to prepare a tax return. I'm just wondering if it needs to be reported on the parents return in the same way as interest earned by a child would be reported, or can we just do nothing and have no repercussions..

EZTAX (talk|edits) said:

28 March 2014
What box is it being reported in on the 1099?

Actionbsns (talk|edits) said:

28 March 2014
Box 3, Other Income.

EZTAX (talk|edits) said:

28 March 2014
No need to report it if in box 3 if she has no filing requirement. Does not go on parent's return. Just need to deal with it if it is in box 7 - non employee compensation.

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