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    JustMe is online now Diamond level (5000+ posts)
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    Default Scholarship Money is excess of qualified expeses, Covid funds and Taxes

    So, I am just learning that scholarship money in excess of qualified expenses is taxable. For 2022, dd did receive some of this money and we do have a 1098T from her school. However, they seemed to include money she received under the emergency Covid type funds in the scholarships she received and I thought it said this was not taxable/not a part of income (the Covid/emergency funds only) when she applied for them. When I look on the IRS website it seems to say they are not taxable/a part of income, but it is a little unclear and I am not sure if it is updated for 2022 funds. This makes a big difference for her as we were otherwise not planning on her filing a return as her earned income was very little, she doesnt need anything back, and she would not need to file a return. Also the Covid and non-Covid grants are combined in the box, but they do separate the amounts below so I can see them. So, questions,

    -Does anyone know for sure if emergency Covid funds dispersed through colleges were non-taxable or taxable for 2022? I called the school, but they are not really able to answer (going to the supervisors supervisor for info, but we had a small issue (not even tax related) that would have been resolved in 5 minutes at many schools the previous year and it took months). I do have an accountant for my taxes, but dont have my appt for a couple of weeks and this is not really about my taxes (so I can ask, but if I can get the answers before that would be better).
    -Does anyone know of any tax software in which you can enter your info and see what it looks like without having to put identifying info that would also allow us to input scholarship info? I would love to be able to input everything and see what it looks like now without having to put that in.I tried Turbotax, butthey want some much info input to just get an idea of what things look like. I am also trying to determine if she needs to file as there are some confusing things about scholarship income being unearned for most purposes but marked as earned for the purpose of standard deduction--if this is the case she is still less than the standard deduction whether the Covid funds are included (please don't address the part about unearned vs earned income unless you have factual info as I dont want to make things more complicated).

    Thank you!
    Last edited by JustMe; 01-27-2023 at 07:30 PM.
    lucky single mom to 20 yr old dd and 17 yr old ds through 2 very different adoption routes

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