- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
Q. The organization who granted the scholarship is asking for a W-9 form. Does that mean I will be taxed?
A. Probably. The fact that they are asking for your Social Security number (SS#) probably means they will be issuing you an information tax form (e.g.1099-MISC), with a copy to the IRS, to report the amount paid to you.
Whether it is taxable will depend on more information. But the fact that an IRS form is issued means it probably is taxable.
Scholarships that pay for qualified educational expenses (QEE), such as tuition, fees, and course materials, at an "eligible institution" are usually tax free.
Then there's the question of whether the money really is a scholarship, as opposed to employer assistance or additional compensation for work. What does "work training scholarship" mean and who/what is this "organization"? Was the money paid to you to the school?
The good news is: if the "scholarship" is not tax free, then you can claim the QEE, paid with that money, for the tuition credit (if you attended an eligible institution).