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My daughter has scholarship money that was used for Room and Board, and therefore taxable Federally. We didn't realize this until after she filed, and are now trying to file an amended return. The Federal form updated correctly, but I didn't see the information on the updated State form. Is that right? Where should it appear on the State form? Or is it not relevant?
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It depends heavily on the state. Some states don't tax scholarships. What state did you file?
Generally scholarships are not taxable in PA. PA taxes it based on how it was earned versus what it was used for. Meaning if it was used to help further your education it is not taxable.
If it is taxable income it will appear with Gross Compensation which is on line 1 of your PA 40.
What are the criteria for excluding a scholarship, fellowship or stipend from PA taxable compensatio...
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