Scholarship Income

[Anonymous]

Wow.

[CreditCuriosity]

Some people are ok with using and some people say don't use it.. Also depends upon the lender as well..  I personally wouldn't use it on an application nor would I use my parents income that supports me in college when I was in college ( I am long past college, just for arguement sake), but others do it all the time in their applications..  You are going to get both sides of the arguement on this thread people saying it is ok and others saying no it isn't..  Ultimately it is your call, I just wouldn't try it with Amex or a CU where you have to prove income possibly.

[Anonymous]

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@redpat wrote:

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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.

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I have seen a tax advisor.  Actually multiple because of my situation.  It is rare that you have a 1098T that shows more scholarships/grants (box 5) than fee's (box 2).  If you do not have enough qualified education expenses to equal your scholarships you must pay taxes on the remainder.

IRS Publication 970 clearly states:

"A scholarship or fellowship grant is tax free only to the

extent:

It does not exceed your expenses;"

[redpat]

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@Anonymous wrote:

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@redpat wrote:

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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.

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I have seen a tax advisor.  Actually multiple because of my situation.  It is rare that you have a 1098T that shows more scholarships/grants (box 5) than fee's (box 2).  If you do not have enough qualified education expenses to equal your scholarships you must pay taxes on the remainder.

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Then you answered your own question. Then include that amount as income then because you can back that up on your tax return.  

That is odd.

[Anonymous]

FWIW - I never used my school grants/scholarships or loans as income.  I did call and ask the bank/cc company if I should and they said because it is not a consistant source of income (usually a lump sum refund) that they couldn't use it as income.. They did however say, that if I had it in a money market, checking/savings acct.. etc - I could add it to my assets. 

.*wasn't making payments on it at the time as it was deferred*  Different situation, I see.

[Anonymous]

Then you answered your own question. Then include that amount as income then because you can back that up on your tax return.  

That is odd.

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It is very odd.  It is just so uncommon that it's hard to find information on it.  Gotta love all of the small limitations in the US tax code