Looking for a tax professional who can help my son (and me) to figure this out
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Viewing 6 posts - 1 through 6 (of 6 total)
In a nutshell, he’s a college student who has full-ride scholarship that’s paid directly to his bank account, and the scholarship is reported as 1099-MISC.
This amount is used to pay his college room & boarding, and his travel expenses to summer internship which is also part of his scholarship program.
We tried HRBlock and TurboTax but we’re stuck, not happy with the result, don’t know if we’re doing it right.
Please let me know If you’ve handled this niche and if it’s ok to message you.
Willing to pay reasonable fees to the tax professional, relative to this student’s scholarship amount.
Sounds like you need to pay tax on the scholarship but don’t want to? Not sure what your actual question is.
I’m an expert in an analogous issue for graduate students (l don’t prep returns though).
The trick is that the software needs to understand that the income is scholarship income, not self-employment or “other” income, which is difficult when reported on a 1099-MISC.
I suggest using FreeTaxUSA instead of the software you mentioned.
Paying taxes is still a way better deal than paying for the full cost of schooling. Don’t be afraid to pay the taxes.
Is this the SMART scholarship by chance? Regardless, the scholarship amount that exceeds tuition, books, and fees is taxable.
We’re in the same boat, kid with no income but full ride plus has to pay $3k+ in taxes. I’m glad someone let us know in advance and try to share that info too because if they spend it, they’re in for a shock.