topic 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????? in Education

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 — Thu, 06 Jun 2019 06:00:37 GMT

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

Vanessa — Thu, 06 Jun 2019 06:00:38 GMT

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

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

zachpdavis5 — Thu, 06 Jun 2019 06:00:40 GMT

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

Yes, a scholarship not used for qualified education expen...

Vanessa — Thu, 06 Jun 2019 06:00:40 GMT

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