Scholarships as taxable income

[Belthasar]

What is the name of your state? Tennessee

Hi,

This is my first year in college so I am not sure how to do this. Anyway for last fall and this spring I was awarded $5,114 for each semester. After tuition and room and board I recieved a check for $1,464 each semester. This was what was left over from my grants and scholarships.

I believe that I have been told that the fee for the dorm($1,410) is taxable. If this is true then for this last year I would have to claim $5,148 ($1,410 x 2 + $1,464 x 2 - $600 for books)

that is about $400 in taxes that I would have to payout. Most of the money I recieved was need based. So what would be the point of giving it to me if they were going to take some back?

Below is a summary of what I was awarded:
FEDERAL PELL GRANT 2004-05 $4,050.00
TENN STATE GRANT AWARD $2,178.00
HOPE LOTTERY SCHOLARSHIP $3,000.00
HOPE NEED SUPP SCHOLARSHIP $1,000.00
Award Year Total $10,228.00


I thank you for all your help!!

---Jeremy

 

[abezon]

Your taxable income is your total grants/scholarships, minus your total tuition, fees, books, & supplies. The left over $$ is taxable. If they hadn't given you the extra funds, you'd have had to go out & get a job for living money, which would have been taxable. Essentially, the gov't paid you not to work while in school. Alternatively, you can look at this as getting your school year's room & board for $400. I doubt you could have lived in a cardboard box that cheaply.

 

[Belthasar]

I understand...


Although I did work..... hehe