1099-Misc for scholarship - taxable?

Paying for College
1

My son received a scholarship last year that was sent directly to him and not to his university. From what I’ve read online and in IRS Pub 970 it seems that it should not be taxable. It was all used for tuition. I am surprised though that we got a 1099 for it from the donor. Does he send the 1099 in with his 1040-EZ even though he won’t be declaring the money as income? If so is there any way to designate to the IRS that this money was a scholarship?

Thanks

2

You never mail in the 1099 forms. But your son will have to include this as income, i believe. Not sure there is a way to say that 1099 income is “scholarship” money.

3

Even if it was a check issued by a scholarship committee for winning a scholarship called the xxx memorial scholarship?

4

Scholarships aren’t supposed to be reported on a 1099-MISC but it happens. Check out this TurboTax question and answer page that deals with a similar situation. Be sure to read not just the first question and answer, but the additional answer and the comments that follow.

https://ttlc.intuit.com/questions/2283467-my-child-received-a-5000-scholarship-that-was-reported-on-a-1099-misc-box-3-does-she-have-to-file-her-own-return

5

You enter it where you put the 1098-T information goes. That way it will only tax any left over amounts. If it meet tuition then you won’t be taxed at all.

6

It happens. You may need to attach a statement about it. If you get a MISC and that amount is not somewhere in your return, even if netted out, you’ll get an inquiry/bill from IRS. Doesn’t mean it is taxable. Just that you need to explain it.