Ethics of Outside Scholarships

3togo
Fri, 06 Jul 2007 09:28:56 +0000

So, 3togo, you’re saying if our extended family were rich enough that various members of the family could give our daughter multiple individual gifts of $10,000 each, she wouldn’t need to report that money to financial aid because it’s not “income” according to the tax code?

my first entry must have been written poorly …

If a gift is large (>10,000) it must be reported on the recipients income taxes … so it would be seen by the financial aid world.

If a gift is smaller than the limit it does not need to be reported on income taxes but the recipients assets would likely change and that would also be seen by the financial aid world.

For it not to be seen it would need to be spent or hidden.

Sorry about the confusion about my earlier post