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Old 04-13-2015, 10:21 PM
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Join Date: Apr 2015
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Salary or Scholarship Confusion ?

My daughter received an internship position with a community college
in fiscal year 2014 and was paid $2500 for work performed for a local
business.

No taxes were withheld and the community college labels this internship
as a "scholarship".

Accepting this $2500 as a scholarship bumps up her total scholarship
monies for FY 2014 to be greater than tuition & fees paid, making her
ineligible for the American Opportunity Credit.

Do we have to take these monies as "scholarship" or can we roll this
money into wages she received for FY 2014 ?

thank you for any advice !



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Old 04-14-2015, 02:25 AM
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Join Date: Oct 2010
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her
Scholarship may count as income and, if so, that means that it’s taxable. So, it is important to figure out how to correctly report it when filing her annual tax return.as her scholarship is taxable and that money is not recorded on her W2 form, she must report it. If she files Form 1040,she needs to include the taxable amount in the total on line 7. as the taxable amount was not reported on Form W-2, also enter “SCH” and the taxable amount on the dotted line next to line 7. Her internship scholarship will increase her gross income/Agi/ TAXABLE Income on her return.



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