Do you have to pay taxes on grant money? Let's talk about scholarships and taxes
Many students and parents wonder, do you have to pay taxes on grant money? Or are scholarships tax-free?
Getting scholarships for college is a fantastic way to ease the financial burden of education. The best part? You don't have to pay back scholarship money, making it a lifeline for students aiming to graduate with less debt and steering clear of student loans.
In this video, we'll explore the taxation aspect of grant money and answer questions like, "Do you have to pay taxes on grant money received?" and "Are school grants taxable?" Understanding the tax implications of financial aid is essential for making informed decisions about your kid’s college funding.
00:00 Intro
03:10 Nontaxable Scholarship Funds
04:45 1098-T Form
05:36 Taxable Scholarship Funds
06:30 Taxable Stipends
At The Scholarship System, we redefine paying for college to help families build strong financial futures. The Scholarship System teaches a step-by-step process to secure college funding, primarily focusing on scholarships, through our online courses and resources.
Families have secured over $12.81 million in scholarships to date, helping their students pursue their dreams of a debt-free college education.
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P.S. International Students - This information is meant for US citizens and/or residents in the United States. While many of the tips will be helpful for you (i.e. how to write a well-written essay), we are not specialized in international student scholarships.
Пікірлер: 6
Congratulations on your "paid to go to college" education. I am proud to say my daughter is in the same boat as she is a recipient of the top scholarship at her university. It covers all her expenses including travel, transportation, room and board, as well as up to $10,000 allowance for travel abroad. Which all sounds great until I received the 1098-T with a $22,000 difference between Box 1 $64,399 and Box 5 $84,853. My question, if I claim her as a dependent, enter her 1098-T on my return does she also enter the 1098-T information on her return?
@TheScholarshipSystem
3 ай бұрын
No. The student should be the only one reporting the scholarship income even if you claim her as a dependent. However, books and computer can be deducted and can help reduce the amount of taxes owed. Please make sure that your daughter's return indicates that someone will be claiming her as a dependent.
Thank you for this information. Gonna binge some videos after homework!
@TheScholarshipSystem
2 ай бұрын
Have fun!
Ty for touching on this ❤
@TheScholarshipSystem
2 ай бұрын
You are welcome! We hope you found it helpful!