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bassplayer001
New Member

If I am a full time college student unemployed but supported by scholarships and took some money and bought stocks and then sold them for profit. Do I still pay taxes?

So I am highly worried about this tax situation because I am an unplowed full time college student and I am being supported by scholarships and I got a small portion of that scholarship and then bought stocks and then I sold them for profit..Therefore I am concerned about how I would pay for taxes.

5 Replies
Critter
Level 15

If I am a full time college student unemployed but supported by scholarships and took some money and bought stocks and then sold them for profit. Do I still pay taxes?

**unplowed**    LOL ... don't you just love auto correct ?
SweetieJean
Level 15

If I am a full time college student unemployed but supported by scholarships and took some money and bought stocks and then sold them for profit. Do I still pay taxes?

But he/she is an unplowed bass player!
bassplayer001
New Member

If I am a full time college student unemployed but supported by scholarships and took some money and bought stocks and then sold them for profit. Do I still pay taxes?

Lol... Yeah sorry about that, I didn’t even notice it...
SweetieJean
Level 15

If I am a full time college student unemployed but supported by scholarships and took some money and bought stocks and then sold them for profit. Do I still pay taxes?

Bass = Fish?
Carl
Level 15

If I am a full time college student unemployed but supported by scholarships and took some money and bought stocks and then sold them for profit. Do I still pay taxes?

Absolutely yes. You have to pay taxes on any and all income from all sources not used for "qualified" education expenses. For scholarships/grants the only qualified tax-deductible education expenses are tuition, books, and lab fees. That's it with no exceptions. All excess scholarship monies, regardless of what it was used for, is taxable income to the student.

For 529 funds reported to you on 1099-Q, the only qualified education expenses for those funds are tuition, books, lab fees *and* room and board. That's it with no exceptions. Any excess is taxable income to the student.

So if you've been using scholarships/grants for *everything* there is no doubt that you have some taxable and reportable income.  Of course, any earnings on your investments is also reportable and taxable. But I think you know that goes without saying.

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