Segal AmeriCorps Scholarship question

chuanyun

I received part of my AmeriCorps scholarship (over $600) and listed it as taxable income under the income portion of my return since I have a 1099 MISC.

I also received a 1098-T from my school, which lists $0 under Box 5 - Scholarships or grants.

Do I list the AmeriCorps award a second time under the question "Did you receive any scholarships or grants not reported on a 1098-T?" or is that reporting it twice?

JohnV

You would not report the Segal AmeriCorps Education Award again under the question "Did you receive any scholarships or grants not reported on a 1098-T?

The Segal AmeriCorps Education Award is taxable for federal income tax, which you have already reported correctly. You do not have to report it again under the 1098-T question because this Award should not reduce any eligible educational credit you can take. It is taxable income to you, and so the full educational tax credit should be available to you.

The IRS said only to reduce the education expense on Form 1098-T for tax-free educational assistance here on Q5. https://www.irs.gov/credits-deductions/individuals/education-credits-questions-and-answers

Since the Americorps Award is not tax-free, you do not have to report it as scholarship in the 1098-T section that would have reduce your education expenses for any education tax credits.