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Author Topic: Taxes on scholarships  (Read 974 times)

cooleylawstudent

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Taxes on scholarships
« on: February 05, 2010, 10:44:49 PM »
Some of the students with scholarships on campus mentioned having to pay income tax on the amount of their scholarships. Does this sound right? Has anyone else had to deal with it?

Thistle

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Re: Taxes on scholarships
« Reply #1 on: February 06, 2010, 04:11:02 PM »
Some of the students with scholarships on campus mentioned having to pay income tax on the amount of their scholarships. Does this sound right? Has anyone else had to deal with it?

from what i understand:

if it is paid directly to the school, no.

if it is paid directly to the student, yes.
non ex transverso sed deorsum


JD

cooleylawstudent

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Re: Taxes on scholarships
« Reply #2 on: February 06, 2010, 08:58:56 PM »
you mention if payed to the student. This is my first year on Stafford loans and Grad Plus Loans, do we have to report them on taxes as either income or a write off?


Some of the students with scholarships on campus mentioned having to pay income tax on the amount of their scholarships. Does this sound right? Has anyone else had to deal with it?

from what i understand:

if it is paid directly to the school, no.

if it is paid directly to the student, yes.

vap

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Re: Taxes on scholarships
« Reply #3 on: February 06, 2010, 09:28:08 PM »
1.  Ask your financial aid office financial aid questions.

2.  Loans are not income.  You do not report them on your taxes.

3.  Whether the scholarship is paid to you or merely reduces your tuition is of no importance.  


Here is a basic answer to your question: http://www.irs.gov/taxtopics/tc421.html.

In other words:
If for tuition or required books = no tax.  If for anything else = tax.

Some schools have scholarships that include living stipends.  Most of the stipend portion would be taxable income (less the cost of books).

cooleylawstudent

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Re: Taxes on scholarships
« Reply #4 on: February 06, 2010, 09:31:04 PM »
Thanks for the link. I'll check it out.


1.  Ask your financial aid office financial aid questions.

2.  Loans are not income.  You do not report them on your taxes.

3.  Whether the scholarship is paid to you or merely reduces your tuition is of no importance.  


Here is a basic answer to your question: http://www.irs.gov/taxtopics/tc421.html.

In other words:
If for tuition or required books = no tax.  If for anything else = tax.

Some schools have scholarships that include living stipends.  Most of the stipend portion would be taxable income (less the cost of books).

Thistle

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Re: Taxes on scholarships
« Reply #5 on: February 07, 2010, 01:19:49 AM »
i have to disagree, it does make a difference to whom the scholarship is paid.....and not all living expenses are taxable.

at any rate, i would apply my scholarships to tuition and books first, then use the loans for living expenses.  that way you are sure to be in the clear.

but vap is right, dont listen to blowhards on an internet chat board, ask your financial aid...although if they are like most finaid offices, they arent worth the dynamite to blow them to hell.  ask your tax prof, that would prolly be better

non ex transverso sed deorsum


JD