Are scholarships taxable?

[BoxingTheStars]

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Just received word that I got a (small) scholarship from a local hospital. It got sent to my parents' house so I haven't gotten to see everything that came with it, but my mom told me there's 2 W-9 forms (one for me, one for my school). Does this mean I'm going to have to pay tax on the scholarship? If so, anyone know how much?

 

[amandalynddoh]

.I am a college student who is in need of ..a grant to help pay for tuition... I do not know what to write in the grant request letter since I am writing it as an individual and not on behalf of a non-profit organization. Is there a book that contains names of organizations that individual grant seekers/college students can write to for grants/financial aid? Does anyone know where I can find a student grant to my specific circumstance?.

 

[plauto]

Just received word that I got a (small) scholarship from a local hospital. It got sent to my parents' house so I haven't gotten to see everything that came with it, but my mom told me there's 2 W-9 forms (one for me, one for my school). Does this mean I'm going to have to pay tax on the scholarship? If so, anyone know how much?

IIRC scholarships used to pay tutition and fees are not taxable, scholarships used to pay living expenses are taxable. Hopefully somebody who is 100% positive will chime in.

 

[TMP-SMX]

IIRC scholarships used to pay tutition and fees are not taxable, scholarships used to pay living expenses are taxable. Hopefully somebody who is 100% positive will chime in.

If you are working toward a degree and use the scholarship money for tuition, fees, or something that is required to attend then it is not taxable. I assume this scholarship from the hospital is for medical school and will go directly to you. So if you use the money (or any of your own money) for fees then you can knock that off of your income. Every check you write that financial aid doesn't count you can remove. Many schools will require you to have health insurance to attend, professional disability insurance, student dues, and various tests you'll need done in order to attend. Also, you'll be buying a stethoscope, required texts, and other things that are also required. So in my opinion unless the scholarship is a huge amount (then you should take out less in loans and have that pay for tuition) you don't even have to worry about it being taxable.

From FinAid Taxability of Scholarships

Non-degree Candidates

If the student is not a degree candidate, the full amount of any financial aid is subject to federal income tax, even if it is spent on educational expenses.

Degree Candidates

If the student is a degree candidate, then scholarship and fellowship amounts used for tuition and REQUIRED course-related expenses (e.g., fees, books, supplies, and equipment) are exempt from federal income tax and may be excluded from gross income. Amounts used for living expenses (room and board) and other non-required expenses (computers, travel, etc.) are not exempt.

In most circumstances, federal and state educational grants are not taxable. (They are treated as scholarships, and are nontaxable to the extent that they were used for tuition and education-related expenses. Since most federal and state educational grants are restricted to being used for tuition, the usually end up being nontaxable.)

 

[southerndoc]

As others have said, the scholarship isn't taxable if you use it to pay for tuition when studying for a degree AND the scholarship is competitive (e.g., meaning there was an application and selection process; it wasn't just handed out to you by someone without a formal process). If you use it for living expenses, then it's taxable. If the hospital simply gave you money to attend medical school (without a formal scholarship program), then it would be considered as miscellaneous income and you will receive a 1099-MISC form from the hospital and will be required to pay taxes on it.

 

[Life Prevailers]

Hi, there are many Non-Governmental Organization that gives grants to individual, you can search online, or if you could wait till i come back online, i can give you a contact. Its only that, they dont give out huge money as you now they are NGO.

You can contact me for their contact information, its not here with me at the moment, but if you write to me, i can give you.

 

[TMP-SMX]

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