January 8, 2009
Do I have to report my scholarships when my parents file taxes?
Can you answer lavender's question about scholarships?:
I am a college student. I received many private scholarships that
preety much covered all my tuition and living expenses. I know that I don't qualify for any tax deduction for schooling. This is
because I received a whole bunch of scholarships. The scholarships are tax free. However, do I have to report scholarships when filing taxes. I thought they were non
taxable.
Thanks
Filed under More Scholarship Answers by admin
Comments on Do I have to report my scholarships when my parents file taxes? »
Yes scholarships are non taxable. You don't have to report them as income.
Start an offshore corporation and have them pay your schooling as a corporate perk.
When it all falls apart just blame the CEO.
It is very possible to have scholorship income. To determine if you have to report any of it as income you first take the amount of scholorships you received durring the tax year and then subtract all qualified tuition and fees that were paid by the scholorships. If you received more in scholorships than you had to pay in tuition and fees than that amount must be included as income on your personal 1040. If you do have scholorship income you can deduct the cost of books from the taxable amount to decrease your tax liability on the scholorship.