The Tax Questions Blog

Posts Tagged ‘funding’

Question: Are scholarships considered taxable income?

I received a 1098-t but did not qualify for anyh of the credits. Do I still need to pay tax on it? Its o nly $896.

Answer: If the scholarship paid for eligible school expenses, it isn't taxable. If you got it in cash and used it for room, board, or toward a car, or other personal expenses, that part is taxable income.

Figuring out college tax breaks: American Opportunity Credit

Lawmakers have enacted numerous tax credits and deductions to help families defray college costs. Figuring them out practically requires a Ph.D.