subject: When Are Scholarships Tax Free? [print this page] Author: Hector Milla
Most of the scholarships you get are tax free but there are those that are taxed. What is taxable or not is determined by the IRS and most of the time scholarships meant for tuition are not taxed. The scholarship money you pay for room and boarding, traveling, research and equipment may be taxed. The reason why scholarships may be taxed is because they are regarded as your income. Once you get a scholarship, you should find out if the award is tax free or not. Hector Milla Editor of the "Free Scholarships And Grants" website -- http://www.FreeScholarshipsAndGrants.org/free-online-scholarships-money -- pointed out; There are scholarships that are given to both citizens and non-citizens and may be tax free for the citizens but taxable to the non-citizen beneficiaries. In such cases, the taxing is done by their home country since the scholarship may be subject to the tax laws of the said country Many scholarships may be exempted from taxes but this will depend on what the scholarship is meant for. Most people would like to know when a scholarship is tax free and if you are a fulltime or part-time student at an institution, the scholarship you get is tax free. This means that the money is used for your tuition fees at the institution as well as for buying books and other materials you will need for your studies. Most of the time when you get the scholarship, you will be told whether it is taxable or not but you can find out by yourself so you know whether you are supposed to file tax returns or not. Other scholarships not meant for educational purposes such as those that are open and do not specify what the benefactor may do with the money are taxable. If you intend to have a college degree and know that you will be a full time or part time student, you can rest assured that your scholarship will be tax free unless otherwise stated. Your tax advisor should be able to tell you more on your scholarship and tax added H. Milla. Further information about trusted and reputable sources for government grants by visiting; http://www.FreeScholarshipsAndGrants.org/free-online-scholarships-moneyAbout the Author:
Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.
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