10 PoInTeR!! Do I have to report the scholarships and grants I receive to the IRS?

Question:The scholarships and grants I receive throughout the entire school year do not exceed the cost of tuition...according to the university I attend, if my scholarships and/or grants exceeded the cost of tuition I would simply not receive them...but I regardless, the money that gets sent to me after my tuition is paid is around $4000 for fall and spring semester (each).so do I have to report this to the IRS?

and if I am supposed to but I don't report it to the IRS...what happens?

Answers:
Per IRS Publication 970 - Tax Benefits for Education:

"Whether you must report your scholarship or fellowship depends on whether you must file a return and whether any part of your scholarship or fellowship is taxable.
If your only income is a completely tax-free scholarship or fellowship, you do not have to file a tax return and no reporting is necessary.

A scholarship or fellowship is tax free only if:
You are a candidate for a degree at an eligible educational institution, and
You use the scholarship or fellowship to pay qualified education expenses.

"If all or part of your scholarship or fellowship is taxable and you are required to file a tax return, report the taxable amount..." You must report the taxable amount whether or not you received a Form W-2. If you receive an incorrect Form W-2, ask the payer for a corrected one.

For information on whether you must file a return, see Publication 501, Exemptions, Standard Deduction, and Filing Information, or your income tax form instructions.

This article contents is post by this website user, EduQnA.com doesn't promise its accuracy.



More Questions & Answers...
  • Can a single female with no kids and no diploma get assist.?
  • How can i get a personal loan without a co signer and how do i do it step by step?
  • Should I apply to a better COLLEGE?
  • What do your taxes have to do with student loans?
  • Where can i find cna programs?
  • Applying for financial aid?
  • How can i make money ? to pay for college ?
  • Will I still receive financial aid?
  • Copyright 2006-2009 EduQnA.com All Rights Reserved.