Quick question about scholarship funds

[krunchykrome]

I applied for a $1500 scholarship through the company my father works for. I was approved and sent a letter that said the $1500 would be "administered through your father's payroll." Now does this mean they will tax it or not? I don't think they will because it's not gross income, and I think it will be a separate item on his pay stub.

Can anybody give me some insight?

Thanks

 

[krunchykrome]

Bump for Wednesday morning crowd.

 

[ElFenix]

sounds like income to me.

 

[rgwalt]

Scholarships administered through the university are not taxed initially. You have to claim any portion of the scholarship not used on tuition, books, and required supplies (room, board, computer, etc do not qualify). I don't know what to tell you about the scholarship going through the payroll. If it is taxed, then you should be able to get some (or all) of the money back at the end of the year.

R

 

[dullard]

Originally posted by: rgwalt
Scholarships administered through the university are not taxed initially. You have to claim any portion of the scholarship not used on tuition, books, and required supplies (room, board, computer, etc do not qualify). I don't know what to tell you about the scholarship going through the payroll. If it is taxed, then you should be able to get some (or all) of the money back at the end of the year.

Ditto.

I've paid tax on scholarships because I got more scholarships than I needed to cover tuition, books, and supplies. But most people don't ever reach that point. And the only part that was taxable was the part that exceeded the college costs. And after all that, the IRS generally doesn't know that you got the scholarship. So, if I was dishonest, I could have not paid the tax.

 

[Golgatha]

Originally posted by: rgwalt
Scholarships administered through the university are not taxed initially. You have to claim any portion of the scholarship not used on tuition, books, and required supplies (room, board, computer, etc do not qualify). I don't know what to tell you about the scholarship going through the payroll. If it is taxed, then you should be able to get some (or all) of the money back at the end of the year.

R

Computer qualifies if used for school and so do all school supplies?