New (tax) year, new help!

Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.

Question

When a student attended more than one school, why doesn't UltraTax/1040 add together the scholarship, grants, and expenses for all schools to figure the total amount of qualified expenses and taxable scholarships?

Answer

The IRS lets you combine scholarships if the student's scholarship terms allow the scholarship to be applied to classes taken at another institution. If the terms of the scholarship do not cover expenses for classes taken at another institution, then the amounts cannot be combined. By default, UltraTax/1040 does not combine scholarship amounts since UltraTax/1040 does not know the terms of each scholarship scenario.

If you determine that the scholarship terms allow for the scholarship to cover expenses from other schools, manually allocate the amount of scholarships and grants between institutions as necessary.

Related topic: Qualified expenses for education credits FAQs

Was this article helpful?

Yes No

Submit