Taxes on financial aid?

[bpinyourarea]

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I am very fortunate to receive a full COA scholarship for medical school. In an effort to budget finances for this upcoming year, I'm wondering if anyone knows how scholarship and stipend are taxed at the graduate school level? My understanding is that the portion for tuition + fees is not taxed, but the portion for living expenses is taxed? If so, is it considered as earned or unearned income? Thanks!

 

[KnightDoc]

I am very fortunate to receive a full COA scholarship for medical school. In an effort to budget finances for this upcoming year, I'm wondering if anyone knows how scholarship and stipend are taxed at the graduate school level? My understanding is that the portion for tuition + fees is not taxed, but the portion for living expenses is taxed? If so, is it considered as earned or unearned income? Thanks!

It's the same as UG. Unearned income. You're not going to be receiving a salary for teaching a class, or something similar, correct? In that case, you are not "earning" the income merely by having a pulse and (maybe) attending classes. 🙂