Q: I have received a fairly large college scholarship for the upcoming academic school year. This is my first time ever receiving a college scholarship and I am wondering if I will have to pay taxes on the money I have received through the scholarship?
A: Typically, college scholarships are not taxable, nor are they considered as income. However, if an individual uses any of the scholarship money on things deemed to be “non-qualified educational expenses”, then the individual is required by law to report that amount to the IRS. Non-qualified educational expenses can be anything not directly related to college tuition fees, such as room and board, paying non-education related bills, etc…
If you have used the college scholarship on non-qualified educational expenses, or do not know if what you used the college scholarship money on would be deemed as a non-qualified educational expense, the best thing to do would be to speak with a tax professional or accountant. Tax laws can be difficult to understand and complicated, so to avoid any possible fees or penalties it’s always best to check with a tax professional if you have any questions at all.
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