My nephew received 100% athletic scholarship for 2010. No out of pocket expenses except for minor things. Anyway, each time I search I come up with the room and board part is taxable to my nephew, is this correct? And where does it go on the return?
tks all
From
You cannot exclude from income any part of the grant used for other purposes, such as room and board.
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So, yes, R&B taxable. Joe
and.... see the instructions for how you report taxable scholarships on Line 7.
I believe that the taxable portion of scholarship(s) is the amount by which total scholarship assistance exceeds the total cost of tuition, fees, books and supplies no matter what the scholarship issuer says the money is for.
I'll rely on someone else to look it up and prove me wrong. :)
The portion of the scholarship that exceeds tuition, books, and fees is taxable. The taxable amount is entered on the line for wages (line
7 if Form 1040 is filed) with the notation "SCH" to the left of the amount. If you claim your son as a depenent, the taxable portion of the scholarship is considered earned income for purposes of figuring his standard deduction. For more information, see IRS Publication 970.Have something to add? Share your thoughts — no account required.
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