Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 02-14-2009, 03:48 AM
Junior Member
 
Join Date: Feb 2009
Posts: 1
1099-Misc for Scholarship Award, how to defray taxes?

I received a $1000 scholarship award from a textbook company in Dec. 2008 after submitting an essay in their scholarship competition. The money was awarded as I am going on to obtain a Masters degree in a healthcare-related field.

Initially, I received a 1099-Misc from them with the amount reported in Box 7 (Nonemployee Compensation). Given that no services were performed, I contacted them and was reissued a new 1099-Misc with the amount in Box 3 (Other Income) instead. Unfortunately, I am still finding that I will have to pay around $250 in taxes on the original $1000 award. The check was sent to me and cashed in Dec. 2008. My Masters program begins June 2009. I intend to use the entire $1000 amount to pay for tuition.

Is there a way that I can defray the taxes given that I will be a degree-seeking student and plan to use the money for my tuition expenses? How does the fact that the award and the tuition on which it will be spent occur in 2 different calendar years affect things? Ditto for the fact that I was not enrolled in the program when I received the award, but that I will be by the time I spend it? I have read all the IRS publications on the subject, but cannot make sense of this given the variables involved!

Thanks in advance for any help you can provide...



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Employer and Scholarship paid tuition billelliottjr Income 2 01-25-2011 06:24 PM
1099-misc jmecooper Income 1 02-12-2009 06:20 PM
screwed by 1099-MISC fause1sr Income 0 02-03-2009 11:45 AM
1099 misc? lehman09 Income 1 01-30-2009 12:16 PM
1099-misc Jaduexclens Income 1 02-22-2008 07:23 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.