Taxation On Scholarships And Fellowship Grants

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Taxation on Scholarships and Fellowship Grants

David Fuelling and his fellow professionals at Florida Tax Advisors are waiting to help students file their income tax returns. People attending college, no matter their age, will find that there are certain scholarships and fellowship grants that are taxable. These moneys received for education may be considered as a form of income, and therefore are subject to taxation just like the wages and earnings from a job. It is important that these students seek the help of a qualified tax preparer, ensuring that their taxes are filed correctly.

What is a Scholarship?

Many current and future college students seek the financial aid of scholarship. A scholarship is a monetary award that is given to a student based upon specifications set forth by the scholarship donor. The largest benefit to a scholarship is that it is not a loan which must be repaid. Scholarships are given based upon merit, qualifications, and demographics that are predetermined. Any type of student can receive a scholarship, they are not given based upon income levels alone. As long as the student shows an aptitude for a certain subject matter or sport, they may be eligible to win the award.

What is a Fellowship Grant?

Similar to a scholarship, in that there is no requirement for repayment, a fellowship grant is awarded to the highest achieving students in a particular field. These award moneys are most often associated with students who are attaining a post

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