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My child received a scholarship that can only be used for educational enrichment. It was used to purchase a computer for research for an honors thesis and for travel to a conference of the professional society in her field. Can she or I claim these as education expenses?
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Yes, you can apply the computer to the scholarship which will make that portion tax-free, but travel expenses won't.
"Scholarships and FellowshipsA scholarship is generally an amount paid or allowed to, or for the benefit of, a student at an educational institution to aid in the pursuit of studies. The student may be either an undergraduate or a graduate. A fellowship is generally an amount paid for the benefit of an individual to aid in the pursuit of study or research. Generally, whether the amount is tax free or taxable depends on the expense paid with the amount and whether you are a degree candidate.
A scholarship or fellowship is tax free only if you meet the following conditions:
For purposes of tax-free scholarships and fellowships, these are expenses for:
However, in order for these to be qualified education expenses, the terms of the scholarship or fellowship cannot require that it be used for other purposes, such as room and board, or specify that it cannot be used for tuition or course-related expenses.
Expenses that Don’t QualifyQualified education expenses do not include the cost of:
https://www.irs.gov/newsroom/tax-benefits-for-education-information-center
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