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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. ...
Nosjack's user avatar
  • 8,787
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, ...
David Schwartz's user avatar
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 ...
JTP - Apologise to Monica's user avatar
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: ...
C.S.'s user avatar
  • 715
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 ...
littleadv's user avatar
  • 177k
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 ...
Joe's user avatar
  • 35.8k
2 votes

Is a fellowship grant for research automatically "for personal services", and thus wages?

The difference is in the clear definition of the scope of work. Wages are paid for a specific work done. Scholarships/grants are given to perform some undefined future work. You do not receive ...
littleadv's user avatar
  • 177k
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 ...
mhoran_psprep's user avatar
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 ...
argentum2f's user avatar
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 ...
Orange Coast- reinstate Monica's user avatar
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 ...
littleadv's user avatar
  • 177k
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 ...
A. Rex's user avatar
  • 121
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 ...
tmwn6919's user avatar
  • 107
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 ...
mhoran_psprep's user avatar
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 ...
Orange Coast- reinstate Monica's user avatar
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 ...
Philipp's user avatar
  • 24k
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 ...
cbeleites unhappy with SX's user avatar
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. ...
fishybell's user avatar
  • 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 (...
JTP - Apologise to Monica's user avatar
1 vote

Determining if an undergraduate scholarship stipend is eligible for an IRA

1) Why wouldn't I be able to contribute to an IRA if it is taxable? Since I am spending the stipend on living expenses, shouldn't it count as income and thus make it eligibile for an IRA? Not any ...
littleadv's user avatar
  • 177k
1 vote
Accepted

Can a Canadian citizen claim tax-exemption on a U.S. scholarship intended for travel costs?

According to this page on the IRS site, assuming that you are residing in the US during your time at college, and this appears to be the case by the nature of your scholarship, then no, the ...
not-nick's user avatar
  • 6,418

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