PrinceofWands
Lifer
- May 16, 2000
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Originally posted by: Wreckem
Originally posted by: PrinceofWands
No biggie, I've had a few years that low. This year was around 10k too, but with my grants and scholarships it goes up almost 20k. On the good side you'll pay no taxes. In fact, I've only had to pay taxes 3 years in my entire life.
Grants are not treated as taxable income. Scholarship money used for tuition and books is also not treated as taxable income. However any scholarship money spent on living expenses is taxable.
Say your tution came to $4000 a semester, your books came to $1000 a semester.
Further add, you had the standard $4050 in grants for the year. Say you had a $7500 scholarship. Total tution plus books $10000-4050 in grants = 5950. So 7500-5950=1550 which is what would be considered taxable income.
Unless you have a large scholarship you should be able to claim it all went towards tuition and books. The way I have worked it is grants + scholarships paid for tution and books and students loans paid for the living expenses.
Yeah I basically never owe anything. I'm going to be very confused when I start teaching and suddenly have to pay at the end of every year.