Tuition and Schloarship

[S T]

Okay I am agonizing over this one - hard to obtain reports - so based on what I do have
Daughter is over age 24 in 2011 - in Grad School for Degree
Has Scholarships/Stipends of $ 27K - non restricted
Tuition Paid of $ 23K
So $4K becomes taxable - which as far as we can determine assists in contributing to her Rent and Food
Parents are not contributing to support except when funds fall short during the month
No student Loans

Parents would not claim as a dependent
Daughter would claim $ 4K as Schloarship Income,

Does this look right?

Thanks,

Sandy

[JG EA]

Okay I am agonizing over this one - hard to obtain reports - so based on what I do have
Daughter is over age 24 in 2011 - in Grad School for Degree
Has Scholarships/Stipends of $ 27K - non restricted
Tuition Paid of $ 23K
So $4K becomes taxable - which as far as we can determine assists in contributing to her Rent and Food
Parents are not contributing to support except when funds fall short during the month
No student Loans

Parents would not claim as a dependent
Daughter would claim $ 4K as Schloarship Income,

Does this look right?

Thanks,

Sandy

So the Scholarship is non restricted? Then can it be put onto room and board? You seem to indicate that. Then you might have more tuition than scholarship money.
But if you cannot put it to room and board and it all has to go to tuition then yes, taxable.

If she doesn't have any other taxable income - home free.

[S T]

I have less in tuition fees and more in scholarship fees
I think this is where I am getting confused looking at TTB 12-7

So difference is scholarship amt received and tuition paid = taxable?

Sandy

[Gretel]

As JG mentioned, if scholarships have to be fully used for tuition then, yes, you have $4,000 in income.

If, lets say, $10,000 can be used for room and board because there is no restriction, than you actually could have an education credit. I know this would not make any sense in your situation, just used for demonstration purposes.

[Gary2]

As JG mentioned, if scholarships have to be fully used for tuition then, yes, you have $4,000 in income.

But this is a confusing way to say it, because if the scholarship doesn't have to be used for tuition, you still have $4,000 in income - at least, possibly more.

[S T]

Thanks Gary2,
That is what I am thinking - The Univeristy will not issue any tax documents per website info, but they do call all scholarships etc as stipends, and make note that it is up to the Student to track.

So I am thinking the excess needs to be reported as income, as no one is forthcoming in giving me the record keeping and I have been told that part is for rent and food

Thanks everyone else for also posting direction and thoughts.

I am really not liking these challenges on the Ed Credits and Scholarships - no one seems to know and there is little to no accountability!

Sandy

[jimenright]

But,

income is to little to require filing. Does she have other income?

[S T]

Only some 1099 B activity that I need to report so I don't receive a CP2000 notice in 2 years - Parents have already decided that we should go ahead and file even if tax liability is -0-

Just trying to sort this one out with less than records that anyone can furnish to me.

Then with that 1098T notice that IRS was going to maybe look at, I don't want to risk that either by not reporting something - Don't remember when that notice came out, but sometime early in the year.

Again the accountability for these Ed Credits, etc - burden is either on the Student, Parents, or as us as Tax Preparer. - Really dislike that the Colleges do not have to have some accountability in the reporting process.

Thanks

Sandy