topic Room and Board Taxable if Required? in Education

Room and Board Taxable if Required?

ahuselton — Thu, 09 Jul 2020 00:30:14 GMT

My daughter received a scholarship that included room and board. However, the terms of the scholarship required her to stay on campus. $2500 of the $7500 scholarship was allocated toward her fulfilling that on campus requirement. Would she have to file the $2500 as income and pay taxes on that amount of the scholarship if staying on campus was a stipulation?

Re: Room and Board Taxable if Required?

macuser_22 — Thu, 09 Jul 2020 01:00:57 GMT

Yes. Room and board is a non-deductible living expense. Nobody can deduct living expenses.

Any scholarship that exceeds the amount of tuition is taxable income.

Re: Room and Board Taxable if Required?

Hal_Al — Thu, 09 Jul 2020 01:15:34 GMT

Q. Would she have to file the $2500 as income and pay taxes on that amount of the scholarship if staying on campus was a stipulation?

A. Yes. A mandatory living on campus stipulation does not change the fact that Room & board (R&B) are non qualified educational expenses. Any scholarship money used to pay R&B is still taxable.