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Taxable Scholarships

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If I win any of the scholarships I'm applying for are they taxable to me

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Stefano’s Answer

From my understanding, this depends on the nature of the scholarship. For example, if the scholarship is related to academics (books, tuition, etc) then it is generally tax exempt. As opposed to non-academic scholarships (room and board) that would be taxable.

The IRS released a Publication regarding tax benefits for college students (link below). In addition to scholarships, it covers the AmericanOpportunityCredit and LifetimeLearningCredit. These two benefits are great for students since it lowers your tax liability or taxable income. A great way to counteract any taxable scholarship you may receive!

IRS Publication 970 - Tax Benefits for Education: https://www.irs.gov/pub/irs-pdf/p970.pdf
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Kathryn’s Answer

If you use the scholarship money to pay for things like tuition, enrollment fees, books or other supplies, then the scholarship will likely be tax free. If the money is used to pay for room & board, it is taxable. IRS tax topic number 421 is also a helpful resource, linked here: https://www.irs.gov/taxtopics/tc421
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