Are academic scholarships subject to taxation?

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Posted by Nora Douglas (MONEY FORUMS: 7, Answers: 0)
Asked on April 6, 2017 11:08 am
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Hi Nora! For the most part, no! However, IRS Tax Topic 421 covers this topic in greater detail. Here’s a breakdown:
-academic scholarships are not subject to taxation if you’re a degree-seeking candidate and the proceeds are used to cover tuition and fees
-academic scholarships are subject to taxation if the proceeds are used on incidentals
Here’s the link to Topic 421: https://www.irs.gov/taxtopics/tc421.html
Hope this helps!

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Posted by Allison Martin (MONEY FORUMS: 0, Answers: 3)
Answered: May 3, 2017 1:37 pm