It appears that I was taxed on a student loan in which I did NOT pay tuition for that semester. So, I have to pay taxes, repay the principal and interest on it?????

zachpdavis5 · ‎June 5, 2019

Vanessa · ‎June 5, 2019

Yes, a scholarship not used for qualified education expenses is taxable. This is considered income. However, there is generally, no principal or interest on a scholarship. A scholarship is usually basically free money that you never pay back.

If for some you will need to repay the scholarship, you can deduct the repayment from your income in the year you repay it.

https://taxmap.irs.gov/taxmap/pubs/p525-005.htm

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Vanessa · ‎June 5, 2019

Student loans are not taxable. Was this a scholarship or a loan?

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zachpdavis5 · ‎June 5, 2019

Sorry, it was a scholarship and/or grant. Not a loan

Vanessa · ‎June 5, 2019

Yes, a scholarship not used for qualified education expenses is taxable. This is considered income. However, there is generally, no principal or interest on a scholarship. A scholarship is usually basically free money that you never pay back.

If for some you will need to repay the scholarship, you can deduct the repayment from your income in the year you repay it.

https://taxmap.irs.gov/taxmap/pubs/p525-005.htm

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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It appears that I was taxed on a student loan in which I did NOT pay tuition for that semester. So, I have to pay taxes, repay the principal and interest on it?????