Deplorable Pheoma
clarification needed
Wed Dec 6, 2017 11:54am

I'd never thought about this before, so I did a little research.

According to IRS pub 17 page 97

In reference to misc income

"Scholarships and fellowships. A candidate
for a degree can exclude amounts received as
a qualified scholarship or fellowship. A qualified
scholarship or fellowship is any amount you receive
thatís for:

Tuition and fees to enroll at or attend an
educational institution; or

Fees, books, supplies, and equipment required
for courses at the educational institution.

Amounts used for room and board donít qualify
for the exclusion. See Pub. 970 for more information
on qualified scholarships and fellowship

Payment for services. In most cases, you
must include in income the part of any scholarship
or fellowship that represents payment for
past, present, or future teaching, research, or
other services. This applies even if all candidates
for a degree must perform the services to
receive the degree.

For information about the rules that apply to
a tax-free qualified tuition reduction provided to
employees and their families by an educational
institution, see Pub. 970."

So what this all means is that according to current law, that is pre-Trump, scholarships used to pay tuition and required books are not taxable. Scholarships that are used for room and board and optional stuff are fully taxable.

My question is this: Did you mean to say that ALL scholarship money is taxable under the new law? I can't find that anywhere. If that is the case, a link to the information would be appreciated.

  • Not only can't students deduct that-Pikes, Tue Dec 5 3:54pm
    Grants and scholarships are to be considered taxable income. Hits graduate level study hardest. Godd Damnn Trump.
    • clarification needed — Deplorable Pheoma, Wed Dec 6 11:54am
      • UncertainPikes, Wed Dec 6 12:33pm
        I know the rules are changing, and before the Senate these shifted back and forth a lot. So what ends up in the bill and law if it becomes that is unclear. But my understanding is some are trying to... more
        • Thanks for the linkDeplorable Pheoma, Wed Dec 6 4:11pm
          From my reading of the article, it doesn't mention the taxation of scholarships at all..... Never knew there were so many tax breaks and credits for going to school. What a mess our tax system is.... more