topic My son has scholarship with out-of-state university.Since scholarship funds for room & board and are considered as taxable income, does he have to pay taxes in that state in Education

My son has scholarship with out-of-state university.Since scholarship funds for room & board and are considered as taxable income, does he have to pay taxes in that state

andebm — Tue, 04 Jun 2019 19:20:47 GMT

The state is Okalahoma.

Excess scholarships are considered taxable income and une...

maglib — Tue, 04 Jun 2019 19:20:48 GMT

Excess scholarships are considered taxable income and unearned kiddie taxable so must be reported if kiddie unearned income is in excess of $1,050 along with other unearned income. This is taxable income but it is not "earned income" so it is not subject to social security and medicare tax, just state and federal income tax. You are the first person to ask if it was taxable to the non-resident state. I am asking the question to other TT support to see if anyone else thinks otherwise.

If you earned more than $1,000 in Oklahoma and are a nonresident, then you are required to file a nonresident return in Oklahoma.

The amount is not considered earned income though. It may only be taxable to your resident state based on the definitions given.

OK nonresidents sourced income per OK is:

The sources of income taxable to a nonresident are:
(1) Salaries, wages and commissions for work performed
in Oklahoma.
(2) Income from an unincorporated business, profession,
enterprise or other activity as the result of
work done, services rendered, or other business
activities conducted in Oklahoma.*
(3) Distributive share of the Oklahoma part of partnership
income, gains, losses or deductions.*
(4) Distributive share from Sub-chapter S Corporations
doing business in Oklahoma.*
(5) Net rents and royalties from real and tangible personal
property located in Oklahoma.
(6) Gains from the sales or exchanges of real and
tangible personal property located in Oklahoma.
(7) Income received from all sources of wagering,
games of chance or any other winnings from
sources within this state. Proceeds which are not
money shall be taken into account at fair market
value.

Any chance any amount was reported on a 1099Misc or w-2 o...

maglib — Tue, 04 Jun 2019 19:20:48 GMT

Any chance any amount was reported on a 1099Misc or w-2 or any withholding were included?

Re: Excess scholarships are considered taxable income and une...

Tennisfam — Sat, 11 Jul 2020 14:34:47 GMT

I have this same situation in Ohio, I live in NY. $14812 taxable. I also have $1118 earned from Ohio as part of my Schedule C, which results in a loss. Do I need to file in Ohio and will Turbo tax bring in both amounts on that return?

Re: Excess scholarships are considered taxable income and une...

Hal_Al — Sat, 11 Jul 2020 15:12:04 GMT

Taxable scholarship received at an out of state college is not taxable to the state where the school is located, and it is not necessary to file a return in that state. The income is only taxable to your home state.

Since your Schedule C is negative, you do not need to file an Ohio return.

Re: Excess scholarships are considered taxable income and une...

Tennisfam — Sat, 11 Jul 2020 15:24:15 GMT

That is fantastic news. Thank you. This is the 2nd time you helped me with 2 different questions. I greatly appreciate your participation in this forum! Thank you!!!

topic My son has scholarship with out-of-state university.Since scholarship funds for room &amp; board and are considered as taxable income, does he have to pay taxes in that state in Education

My son has scholarship with out-of-state university.Since scholarship funds for room & board and are considered as taxable income, does he have to pay taxes in that state

Excess scholarships are considered taxable income and une...

Any chance any amount was reported on a 1099Misc or w-2 o...

Re: Excess scholarships are considered taxable income and une...

Re: Excess scholarships are considered taxable income and une...

Re: Excess scholarships are considered taxable income and une...

topic My son has scholarship with out-of-state university.Since scholarship funds for room & board and are considered as taxable income, does he have to pay taxes in that state in Education