<p>Hello,</p>
<p>My D just received in the mail a 1099 (yes a bit late) from the third-party administrator of an external scholarship she had received and which was paid DIRECTLY to the school on her behalf.</p>
<p>The terms of the scholarship were that it was to be used towards tuition and fees- -which it was.</p>
<p>The school’s 1098T was correct-- the scholarship was included in the school’s calculations – deducting it from the tuition we had paid the school.</p>
<p>She received the 1099 – in which the scholarship appears in box 3 – other income.
Surely this is incorrect?
Not to mention the headaches in next year’s EFC…but there would be FICA and federal income taxes due-- the amount is substantial.
We use the 1098T on the parent’s income tax…</p>
<p>THoughts? Do we need an accountant…</p>