1. Scholarships
Education comes with a big price tag and scholarships are the only thing that makes it more affordable. So, if you receive a scholarship, congratulations—it means that you’re a hardworking student, however, you’re not applauded for your merit by the Internal Revenue Service.
While some scholarships are tax-free, those that are used to cover incidental expenses are taxable, according to the IRS. The scholarship you receive should be used for academic activities, if not, you will be taxed. Don’t waste your scholarship on rent, transportation, or insurance—you will most definitely regret it.
Note: The scholarship for students who work as a teacher’s assistant or something related is taxable too (such as salaries).
Next, find out how winning can also be losing…..
