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Full time student health insurance coverage

I'm a full time student and my PhD scholarship through the university covers my health insurance. I'm also an employee at the university but my health insurance is through my student scholarship and comes up on my 1098-T. Is my health insurance coverage taxable? 

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1 Reply
KrisD15
Expert Alumni

Full time student health insurance coverage

If it is reported as a scholarship, it would be taxable if you do not have education expenses to apply it to.

Health Insurance is NOT an education expense that can be matched to a scholarship to make that portion of a scholarship tax-free. 

 

Therefore, if the scholarship can only be applied to Health Insurance (no education expenses available) YES, it will be taxable.

Additionally, if taxable, you will pay Income Tax but not FICA (Social Security) tax. 

 

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