Taxable Scholarship

[gman]

Dependent student recieved 1099 for scholarship in the amount of $2000.00. along with p-time job total income of 2500.00. Can the scholarship total be shown less expenses for books, etc, therefore bringing dependent students income down reducing any taxes owed.

Tuition and fees deduction taken on parents return.

[TaxmannEA]

If this scholorship was received for the same tuition that the parents took the deduction on, I would think that it should have reduced the deduction taken on the parents' return. They are deducting student's tuition, so it has to be adjusted for scholorship received.

[Gretel]

Dependent student recieved 1099 for scholarship in the amount of $2000.00. along with p-time job total income of 2500.00. Can the scholarship total be shown less expenses for books, etc, therefore bringing dependent students income down reducing any taxes owed.

Tuition and fees deduction taken on parents return.

I am not quite sure what you are asking about. Scholarship income will not be reported on parents return and total amount looks to low to have to file a return for dependent.

[gman]

earned income

earned income plus 300.00 =2705. standard deduction


w-2 income 2405.00
1099 tax scholarship 2000.00
-------=---
4405.00

less standard ded 2705.00

= taxable income 1700.00
tax 170.00

[Gretel]

Gman, taxable scholarship income is also considered earned income. At least this is what I thought since it normally is reported on line #7.

Coming back to your original question about deducting books etc. If scholarship wasn't used and didn't need to be used to offset tuition than books and supplies can be deducted before you arrive at taxable amount.

[gman]

1099

Thanks, but the 1099 says report as other income line 21. Is scholarship income considered earened income.

This 1099 came from the Choctaw Indain nation.