Discussion:Taxable Scholarships to parents
From TaxAlmanac, A Free Online Resource
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
Discussion Forum Index --> Advanced Tax Questions --> Taxable Scholarships to parents
Discussion Forum Index --> Tax Questions --> Taxable Scholarships to parents
| 6 February 2008 | |
| In the past when a parent claimed a college student as a dependent and claimed the college tution credits, if there was taxable scholarships, I wouldn't do anything with the taxable scholarship part. (If the student claimed themselves the taxable scholarship would become taxable income to them.)
Am I doing this correctly for the parents who claim the child, or should this become taxable income to the parents? Teri | |
| 6 February 2008 | |
| The taxable scholarship is for the student and creates income for the student to possibly file a tax return - if it exceeds the limits of non-filing. Pub 970 http://www.irs.gov/publications/p970/ch01.html | |
| 7 February 2008 | |
| If the scholarship was not taxable, there is a way to take all, or part of the non-taxable scholrship into income (on the students own return) in order to maximize other benefits. I wanted to point this out even though your case is taxable. There is a kind of "breakeven point" where taking the right amount of scholarship in to taxable income maximizes other credits. This applies usually to older students the parents can no longer take as dependent. | |
To join in on this discussion, you must first
log in.
