My daughter earned a small music scholarship at her university. Accepting the scholarship, however, comes with a requirement to take paid private voice lessons. Is the entire amount of this scholarship deducted from the qualified college expense or only the difference between the scholarship and required private voice lessons?
Regards
Did the scholarship come from the folk offerring private voice lessons?
As long as she uses the scholarship to pay for qualified higher education expense, it is tax-free. Qualified expenses are the tuition and fees for enrollment at the school and the expenses she incurs for taking a course. This would include course fees, books, supplies and equipment as long as the school requires all students taking the course to pay those expenses.
So... just apply the scholarship to the above expense and forget about the voice lessons.
scholarship at her university.
What does this last statement mean?
If the scholarship is only enough to cover tuition, then the cost of the voice lessons may be valid for the Hope credit, Lifetime credit, Tuition/Fees deduction, or QTP distribution depending on the conditions (like if the voice lessons take place from a qualified education provider, if they are required as a condition of enrollment at the university). Not sure -- haven't looked it up yet.
scholarship at her university.
Read the original post. This person clearly has expenses in excess of the scholarship.
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