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Home / Services / Calculators / Newsletter / Archives Scholarships Scholarships are tax free so long as they are for tuition. If the scholarship is for tuition and other expenses, such as room and board, only the portion that applies to tuition is free from tax. Books, fees, and supplies are included in the definition of tuition by the IRS, so any scholarship proceeds that can be applied to these expenses are also tax-free. Amounts received from the National Health Service Corp or Armed Forces Scholarship Program for tuition, fees, books, supplies, and equipment are not subject to tax. However, payments that are intended to cover regular living expenses, such as room and board, are taxable. (February, 2003 Newsletter)
James E. Newland, CPA 939 Center Road Eastlake, Ohio 44095 440-951-9799 |
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