<p>I am freaking out, as I have to get FA forms in TODAY. H filed for S yesterday and had included the scholarship income, but the e-file asked him a series of questions, which then removed the scholarship from the income. I am almost absolutely positive that the scholarship should be included in the income.</p>
<p>Any ideas?</p>
<p>Scholarships for tuition, fees, and books are not taxable income. Scholarships for room & board and most other expenses are taxable.</p>
<p>Not much info to go on. </p>
<p>There have been reports here about problems with H&R Block software. Are you using that? Though those reports have involved the software treating taxable scholarships as investment income. </p>
<p>Did scholarships/grants exceed QEE(tuition, mandatory fees, required books and supplies) paid in 2012? Were the questions asked answered correctly?</p>
<p>The scholarship from the school was not designated what it was for. At worst, S’s portion of income was 6k, at best it was 4.5k, as I suppose technically, the 1.5k he paid to teh school out of pocket could have technically been for tuition, but his scholarship more than paid tuition and QEE and room and board. But we used the 6k number.</p>
<p>We did the taxes ourself, no “service”. H just used one of the approved efile companies listed on the IRS site, I think he used Smart File (???).</p>
<p>it is possible that he did not answer the questions correctly, but of course he believes he did. </p>
<p>S had self-employment income of 2700 and W2 of $56 (which is all that shows on line 7 of the 1040, where the scholarship should be).</p>
<p>Bottom line, how do we fix it? It’s income that the school will back out anyway in their FA award, but it is income that Uncle Sam is going to want his portion of. Do we do an amended return indicating the 6k or wait to get audited and pay up then or ?</p>
<p>Thanks.</p>
<p>He should file a 1040X amended return to correct the error.</p>