8

The answer is: because that's what the Congress has decided to enact, and the President (Reagan, I believe in this case, but it doesn't really matter) decided to sign into the law. If we want to speculate, then the rationale may be that since you're not required to pay room and board (and can, instead, sleep in the park or stay at your parents'), it is an ...


8

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, since the statute of limitations has passed. Simply explain to them that you are unwilling to attempt to track down whether the scholarship should have paid you ...


3

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 grants not reported on a Form W­2. A scholarship or fellowship grant that wasn't reported to you on a Form W-2 isn't considered earned income for the earned income ...


3

The requirement of having to file a tax return is different from the requirement of having to pay taxes. You must file a tax return if your income is above a certain amount. It may well be that when you complete all the forms, the standard deduction and the personal exemption etc result in your tax liability for that year being zero. But that does not exempt ...


2

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 scholarship to teach 20 hours of classes per week or to speak at 5 conferences. You receive scholarship to research certain topic, based on your research proposal. As ...


2

The amount you received (before any taxes) goes to the wages line. The taxes paid, which should be reported to you separately (probably on the same 1099 as the scholarship) go to line 64 (assuming full form 1040), and will be credited to the bottom line. Follow the instructions for each line, it will balance out as it should.


2

Financial aid offices on campus should be able to help you out a ton with that sort of stuff. Also, you might just want to try looking up random scholarships using search engines and/or specialized sites that keep up with that sort of info. A lot of scholarships don't necessarily require proximity to where they are housed and can be applied to from anywhere, ...


2

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 you need to understand the financial aid and scholarship forms before you start to save for you child's education. The forms from the college board CSS ...


2

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 amount the proper way - as scholarship income. This way the MISC-1099 is reported, and I pay taxes as I should. This recommendation comes from a TurboTAX Q&A:...


1

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. For US parents it asks you to list an arbitrary number of parents and their genders. It then asks you for each parent's income individually based on their 1040 ...


1

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 (gains) on the account. If one receives a scholarship, partial or otherwise, an equivalent amount can be withdrawn, no penalty, but the gain portion is still ...


1

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 income is eligible for an IRA. Only earned income (compensation) is eligible. From the link - see the second bullet item: For 2015 and 2016, your total ...


1

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 scholarship income is not reportable to the IRS.


1

The standard deduction is built into the tax forms. Just follow the instructions.


1

It's possible, in general. However, it isn't uncommon for these grants to be need-based, so that even if you're accepted for several the total grant amount may not increase as much as you might expect.


1

Grants come in several flavors: federal aid, college aid, and independent aid. We'll immediately ignore the last option, independent aid (usually in the forms of scholarships), as these can come from all sorts of organizations for various reasons and are generally merit-based. For federal and college aid, you will need to file a FAFSA. Since your parents ...


1

It depends on which grants you'rs qualified for. It depends on which grants you apply for. It depends on how good your application makes you look by the criteria of thst fund, and how good every other candidate's application makes them look. It depends on how much money the sponsor can afford to give out this year. The way to estimate this is to ...


1

Assuming you are in the US, in 2015 the standard deduction is $6300, and exemption, $4000. $10,300 total. With no other credits or deductions, the next $9,225 of income is taxed at 10%. If your room and board are $15,000, you are looking at under $5000 taxable income and about $500 tax. This assumes you aren't working. If you are, of course that income is ...


Only top voted, non community-wiki answers of a minimum length are eligible