My son had a music scholarship at his university. Do i have to claim that as income? Does he have to claim the scholarship as income?

[KrisD · Accepted solution]

You (might) have to claim the scholarship against the education expenses.

If the scholarship was more that his tuition, the student (might) need to report taxable income.

Basically, if the scholarship paid his tuition, there is nothing to report.(unless you want to apply things differently)

If the tuition was MORE than the scholarship, you might be eligible for an education credit.

If the tuition was LESS than the scholarship, the student might need to report part of it as income.

Below is a link to IRS Publication 970 that gives a lot of great information and advice on how to maximize your education credits:

CLICK HERE for IRS Pub 970 Tax Benefits for Education