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marlenne_28
Returning Member

Are scholarships can be filled as earned as income? I was refunded amount as left over from tuition

 
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2 Replies

Are scholarships can be filled as earned as income? I was refunded amount as left over from tuition

If you have a filing requirement scholarship not used for qualified education expenses is unearned income. (Curiously, it is earned income only to determine if there is a filing requirement).

Hal_Al
Level 15

Are scholarships can be filled as earned as income? I was refunded amount as left over from tuition

Q. Are taxable scholarships  filed as earned  income?

A. Yes. Or, more accurately, mostly yes. 

 

Scholarships are a hybrid between earned and unearned income. It is earned income for purposes of the $13,850 filing requirement and the dependent standard deduction calculation (earned income + $400).  It is not earned income for the kiddie tax and other purposes (e.g. EIC).  For grad students and post grad fellows, scholarship, stipend and fellowship income is earned income ("compensation") for IRA contributions.

 

The amount you were "refunded" isn't necessarily the taxable amount. You have to consider out of pocket expenses (books and computer), amount used to claim a credit (by parent or student) and the fact that room & board are not qualified expenses.

 

 

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