Pamelia (21) is a full-time undergraduate student pursuing an accounting degree at her state university. During the year, she received a $6,500, unrestricted scholarship, reported to her on Form 1098-T rather than Form W-2. She spent $5,500 of the scholarship funds on her current-year tuition, and she applied the rest to room and board. Pamelia also had income from a part-time job, and she is required to file a 2020 tax return. How does she report the scholarship on her Form 1040?.

Because Pamelia had income from a part-time job and is required to file a 2020 tax return, then, she should report the scholarship on her Form 1040 by "entering "SCH" and $1,000 on the dotted line next to line 1 of Form 1040."

Scholarship refers to an amount that a student receives to help him/her in the pursuit of studies.

A scholarship fund may be tax free, partially taxable or fully taxable

Because Pamelia had income from a part-time job and is required to file a 2020 tax return, then, she need to report the scholarship on her Form 1040 in a different way.

In conclusion, she should report the scholarship on her Form 1040 by "entering "SCH" and $1,000 on the dotted line next to line 1 of Form 1040."