Is a scholarship considered income?

Answer by  Bob98 (100)

A scholarship is considered income for reason of tax filing. The IRS does consider a scholarship as income for tax purposes. The scholarship can include room and board.

Answer by  JEG (37)

In general, any amount that is used for books, room and board or other living expenses is taxable. Since the tax laws change every year it is always a good idea to get help from a tax professional to see if their might be other deductions taken to lessen your tax burden.

Answer by  BilWitters (436)

For purposes of taxes, a scholarship is not considered income. The money from a scholarship is passed to a third party (the school) so it is not deemed income.

Answer by  tamarawilhite (17883)

No. A scholarship is a gift toward your education, and it is often payable to the college or the bookstore. A scholarship is not taxable income for federal taxes or state taxes. Scholarship money to pay for room and board may be taxable; consult a tax professional or attorney if you have received a large sum.

Answer by  Stan567 (417)

If you're talking about income for the purpose of taxes, the answer is usually no. The more specific answer is that scholarships, the only portion that can be considered income is that which doesn't go directly towards tuition or education expenses. Any kind of "living expenses" are taxable.

Answer by  patti (29325)

It depends. If you are a degree candidate, and this is an issue with the IRS, the scholarship is for tuition, books, fees and equipment, it is not considered income. If the scholarship includes money for room and board, or if part of the funds are paid directly to you in cash, then that amount is taxable as income.

Answer by  jeroboam (185)

A scholarship can be taxable income if the recipient is not a degree candidate or if it provides assistance for expenses other than required tuition, fees, or supplies.