Question about outside scholarships

Madison85
Fri, 24 Apr 2015 00:43:09 +0000

No, unless that is a requirement of those scholarships.

But scholarships, grants, aid (but not loans) that exceed tuition, fees, books are taxable (subject to kiddie tax) at potentially the parents’ rate in excess of certain limits.

You can ask local scholarship providers to cut the check in January instead of fall if the helps reduce the income subject to tax.

Familiarize yourself with IRS Publication 970.