Scholarship Income

[Anonymous]

When filling out applications or updating my income amounts should I include scholarships I am receiving?  I get around $15,000 in scholarship money a year.

[redpat]

A Merit scholarship is not income.  If you were getting a stipend that would be different.  You cannot pay debt with a scholarship funds.

Lenders don't care if you are getting a scholarship or not, a student or not a student and most loans are deferred until graduation.  They just want to know that you have the ability and income to support debt.  IMO. 

I think you should wait until you are done with school before getting more cards.  What's the hurry?

[Anonymous]

Let me add that some of this goes above and beyond what my tuition is, so I get a refund check from my school.

[redpat]

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@Anonymous wrote:

Let me add that some of this goes above and beyond what my tuition is, so I get a refund check from my school.

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I this because you have off campus housing that you pay for from these funds?  This is usually the case.

[Anonymous]

No I live on campus.  My scholarship and financial aid (not loans) added together cover above and beyond all of my costs (tuition, on-campus housing, and books).  After all of these expenses I get a check every term from my school for the amount above those costs.

[redpat]

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@Anonymous wrote:

No I live on campus.  My scholarship and financial aid (not loans) added together cover above and beyond all of my costs (tuition, on-campus housing, and books).  After all of these expenses I get a check every term from my school for the amount above those costs.

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But you don't have $15,000 of cash flow coming through your checkbook, I assume only a fraction of it. 

As I said scholarships and financial aid is not income, IMO.

[Anonymous]

The $15,000 is the total amont of just the scholarship but that fraction that I do get is income.  I pay taxes on it so the IRS considers it income.

[redpat]

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@Anonymous wrote:

The $15,000 is the total amont of just the scholarship but that fraction that I do get is income.  I pay taxes on it so the IRS considers it income.

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Then you must have work study income.  This portion you can include as income not the total 15k,

We got there one way or another.....

[Anonymous]

Then you must have work study income.  This portion you can include as income not the total 15k,

We got there one way or another.....

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I do not have a work study position nor have I ever had one.  I work full time on top of school off campus.  I know I should not include the whole $15,000 as income and I thank you for clarifying that for me.  Total scholarships received and total fee's are reported to me on a 1098-T from the university.  The amount over the fee's I pay taxes on, therefore it is income.

[redpat]

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@Anonymous wrote:

Then you must have work study income.  This portion you can include as income not the total 15k,

We got there one way or another.....

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I do not have a work study position nor have I ever had one.  I work full time on top of school off campus.  I know I should not include the whole $15,000 as income and I thank you for clarifying that for me.  Total scholarships received and total fee's are reported to me on a 1098-T from the university.  The amount over the fee's I pay taxes on, therefore it is income.

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OP, the 1098T is only used by the IRS to cross reference tuition and fees deductions or eduction credits on someone income tax return.  Form 8863 when filing your 1040 income tax return.  I have no idea what your talking about now.  This form doesn't report income to the IRS.

You may need to see a tax advisor.