Are scholarships taxable? As a new school year gets underway, it’s important to know the tax implications of scholarships if your child is fortunate enough to get one. Generally, scholarships that pay for tuition, books and required materials and fees are tax-free for students from elementary school through grad school or an accredited vocational school. With some exceptions, a scholarship isn’t tax-free if the payments are linked to services your child performs as a condition for receiving the award, such as payments for teaching. Also, amounts used to pay for incidental expenses, including room and board, are generally taxable. Here’s more from the IRS: https://bit.ly/3SQ0slz
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