11
votes
529 vs IRA for kids education and future scholarship
First off, we should clarify what you mean by "529 - money in the kid's name". Usually, this means that the parent sets up a 529 account in their name, but puts down their kid as the beneficiary. ...
- 10.1k
10
votes
College Debt/Collections
This is zombie debt. The simplest way to deal with it is to explain to the debt collector that their failure to act diligently harmed you and therefore you will not pay the debt. They won't sue you, ...
- 10.4k
4
votes
529 vs IRA for kids education and future scholarship
There are long articles, and full books that address this topic.
In general, the answer is yes. Money available is treated according to how it's owned. And your retirement accounts don't count ...
3
votes
Accepted
Is scholarship tax free next to a salary?
Scholarship is not tax free in the US. The webpage you linked to says so right there:
A scholarship/fellowship payment received by a candidate for a degree is generally not taxable income to the ...
- 184k
3
votes
Do I need to file a tax return if I am a nonfiler college student?
Your tax-free scholarship is tax free as long as you spend it on the specified expenses. Any amounts spent on other expenses is taxable, and should be reported on a form 1040. From this page:
...
- 713
3
votes
Accepted
Does scholarship money count as earned income? (Specifically for Line 29, Form 6251, exemption for AMT)
This is more clearly defined in the EITC; for purposes of the Earned Income Tax Credit; then no, it is not Earned Income. See publication 596, page 18 specifically:
Scholarship or fellowship ...
- 35.9k
2
votes
How to smartly enter information of the CSS Profile and IDAC form?
Can someone provide any helpful tips on how to manipulate the input
without actually doing anything illegal?
The key is to start several years before the form needs to be filled out, some would say ...
- 145k
2
votes
My fellowship income was reported in Box-7 of 1099-MISC. How do I report it?
One recommendation I have seen, is to go ahead and file the 1099-MISC as normal. Then enter the full amount as a 'business deduction' (i.e. nullifying the impact of schedule C), then enter the full ...
- 191
2
votes
Accepted
What are the tax implications for leftover financial aid and scholarship money?
Yes, it's taxable. Confirm it with this IRS free tool.
See if you can apply more of the money to qualified, required educational expenses. If you can reduce the $3k in unearned income to $2100, there ...
2
votes
Accepted
529 Funds and Scholarship Refunds
It appears that you paid your tuition, and then the payment was refunded to you because you received a scholarship.
In order for this not to be a disqualified distribution from your 529 fund, you need ...
- 184k
2
votes
Voluntarily treat scholarships as taxable income to get AOTC?
The main point of contention appears to be the following question:
Is it possible to treat a scholarship paid directly to the school as
taxable income (e.g. by applying it to the non-qualified room ...
- 121
1
vote
Would I qualify for an automatic 0 EFC on my FAFSA?
The FAFSA considers both your income and your parents' income. With your parents' AGI of $22k, you are well on your way to a zero EFC. Try https://finaid.org/fafsa/
'Dependent' for FAFSA is not ...
1
vote
Accepted
Voluntarily treat scholarships as taxable income to get AOTC?
Let’s assume your child gets the following 1098-T:
• Box 1: Tuition and required books, i.e. qualified education expenses: $6000
• Box 5: Scholarships, paid directly to the school: $5400
• Let’s ...
- 119
1
vote
Accepted
What are the financial benefits for a company to give out student scholarships?
Whenever a business spends money they don't have to, they do it for one the the following reasons:
It will reduce their taxes. While the tax break is always less than the expense reducing your taxes ...
- 145k
1
vote
Accepted
Where is the fiscal resident of international students receiving scholarship
You are a tax resident of Germany (the legal term being "unbeschränkt steuerpflichtig") if you have a residence in Germany or spend most of your time in Germany (§1 EStG).
In order to prevent people ...
- 24.1k
1
vote
Can public scholarship holders in Germany invest in stock market without losing their scholarship?
Different (public) scholarships in Germany have different conditions.
Some of them, e.g. Bafög are explicitly tied to being in financial need. These scholarships may have limits both on the wealth ...
- 3,004
1
vote
Accepted
How to enter correct amount in Non-US tax return in CSS Profile?
I believe the answer is that the top is the combined, and the lower are the constituent parts.
I think the CSS profile page is not 100% updated to work with Non-US parents as it is for US parents. ...
- 216
1
vote
Scholarship Tuition Reimbursment
The order of events is a bit different than usual. But the result is same as a common example.
529 withdrawals not used for schooling are subject to tax and penalty on the portion that was growth (...
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