Just got one in the mail for my son's scholarship. Can anyone here explain what it means for tax reporting purposes?
Just got one in the mail for my son's scholarship. Can anyone here explain what it means for tax reporting purposes?
Titan wrote:
Just got one in the mail for my son's scholarship. Can anyone here explain what it means for tax reporting purposes?
It's for tuition (T).....education credit, etc. It could mean a few different things depending on your situation. Have whoever does your taxes look at it. If you do your own online, the program will prompt you once it sees you have a college age son.
Wondering the same. Nothing in the mail yet but I understand that the non tuition part of my kid's full ride might be taxable to me, not my kid as I can still claim the exemption while kid enrolled full time.
Would appreciate any insight from a parent with experience.
Bump and also wondering. According to my research we need to pay taxes on my kid's non-tuition portion of a full ride scholarship.
Given the new tax law, elimination of personal exemptions, and the fact that we only get a $500 credit for a child over 17 I think my kid should file on his own and claim himself.
The non-tuition part of the scholarship is approx $10K. If my kid does not file his own taxes, I need to add that $10K to my earnings and it will be taxed at a higher rate which will increase my tax bill by $2K.
However, if my kid files own taxes and claims himself, it looks like a small tax bill of $200. I would lose the $500 credit, but in the end we pay less overall.
Any experienced opinions out there?
The laws did change this year. For most full rides having them file on their own make much more Sense. If they also held summer jobs, there’s no question