TAXES ON FINANCIAL AID
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Anonymous
| Is any part of financial aid considered taxable income? Room and board? Does any one know. |
Anonymous
| Dependent's "education" ?? |
Anonymous
| Yes. |
Anonymous
| Room & board are taxable as income. I always wondered if athletes paid tax on their sports scholarships. |
Anonymous
| My understanding is any scholarships or aid that exceed tuition, and fees. |
Anonymous
|
Yes. Total grants/scholarship less the cost of tuition and required fees = taxable amount of scholarship. It’s taxable income to the kid and after the standard deduction will be taxed at parents’ marginal tax rate. Taxable scholarships are subject to the kiddie tax.
Note: even if student health insurance is required and the student enrolls and is billed for it, those fees are not considered qualified fees that are exempt from taxes. My DC received scholarship grant to cover student health insurance and had to pay taxes on that amount as well |