Scholarships
You’d think scholarships were made to free students from as many expenses as possible. Well, that is true in a sense. If you get a scholarship that covers tuition, fees and books, you don’t have to pay any taxes. But if you get more than that, things will be a little different.
If your scholarship covers tuition, fees, room, travel and other expenses, a portion of it is taxable.
Unfortunately, the same rule applies to students who get financial aid for work (such as teaching assistants). The good news, though, is that the Senate is keeping tuition waivers and discounts tax-free.
