I'm Confused, Is my Financial Aid for school taxable?
I got Financial Aid for one term of college last year. I got enough for tuition and books and had about $200 left over for living expenses. I didn't need to take out any loans and didn't use any of my own money. I'm doing my own taxes online and I'm confused about what I need to put when they ask me what my total taxable scholarship income was. Is Financial Aid Taxable? I don't have to pay it back.
So Do I enter the total amount I got from Financial aid for the term?
- artillerygirl01Lv 51 decade agoFavorite Answer
Read Publication 970 from the IRs website. It explains exactly how to figure out which portion of your financial aid is taxable. Typically, the amount used to pay tuition, required fees, and required books is not taxable.
- TaxGurlLv 61 decade ago
Scholarships and awards are taxable income to you. Since you don't have to pay them back, they are considered a form of income. It stinks but think of it this way: the taxes on the funds are still a lot less than paying the full tuition.
- Anonymous1 decade ago
Tuition is tax free.
The amount you spent on books *is* taxable. (Unless the books came with the class and were waiting for you when you showed up the first day of class, they don't count.)
The amount spent on room and board *is* taxable.
Put SCH $xxx next to the wage line and add it to the wages.
- labarreLv 44 years ago
in certainty the state the place you're a resident provides you with a credit for taxes paid to different states. you will nevertheless record the two states returns. One resident return and one non-resident. however the total tax would be based upon the blended rates.