7. My child received a scholarship that is paying for a portion of college expenses. Are there any tax implications?

Qualified scholarship amounts that are received by a degree candidate are generally excluded from income to the extent that they are used to pay for tuition, required enrollment fees, books, supplies, and equipment that are required for the course by the educational institution. If the amount of scholarship funds received is more than the above expenses, the excess must be included in the student’s income. This commonly occurs in the case of a “full ride” scholarship where the scholarship amount includes payment of room and board expenses.

Return