<p>I am currently a freshman in college, and I am starting to pull together the necessary information to fill out the FAFSA (and my school’s own form) for next year. I have a bit of time, because my college’s priority deadline is not until 4/1. </p>
<p>However, I have a couple of questions:</p>
<p>1) If my home state’s priority deadline differs from the school’s date for renewal aid, I assume I should work to complete it by state’s date instead, correct? I am not sure if state aid is available for renewal applicants (or if I’d qualify anyway) but I don’t want to miss out on any possible opportunities.</p>
<p>2) For my 1st year in college, I received several external scholarships. Some were paid directly to the college, while others were paid to me and I sent them into school for payment toward my tuition. I reported them all to the school, regardless of how the external entity paid the scholarship money out. Being my first year having to fill out the FAFSA (and income tax forms) with external scholarship money, I am not sure how this works and I want to make sure I do it right.<br>
a) Will I receive a tax form from each of the company(s) who granted me scholarship, or would I only receive one from my college for the total amount?<br>
b) Is all scholarship money received considered taxable income? Or, does it differ by scholarship provider? In other words, will company A require me to pay taxes on the money because of how they report the money, but Company B does not. If they do differ, then how do I know which ones have to be put on my income tax form?</p>
<p>Thanks in advance for any help you can provide. You were all so knowledgeable in answering my question the other day about whether a FAFSA Renewal app existed, so I expect you will be just as helpful and knowledgeable on these topics!</p>
Yes. if the state deadline is earlier than the school deadline make sure you meet the state deadline.
I am not sure. You may find that some companies will send you forms and some will not.
Only scholarships and grants in excess of tuition and fees and required books and supplies are taxable. It has nothing to do with the provider - it is the IRS that makes the rules. If a scholarship specifies that it must be used for a certain expense that is not a qualified education expense for tax purposes - for instance room and board - then it will be fully taxable. If no expense is specified by the scholarship you can apply it to expenses that would make it non taxable and only any excess would be taxable. You should get a 1098T from your school that will detail tuition and fees. There my be certain required fees that are not allowed as a qualified expense even though you are required to pay them For instance my daughter’s school has a ton of required fees and some of them (athletic/transportation/school newspaper/health fees) are disallowed by the IRS. This is reported on the 1098T.</p>