There have always been an arguement about which scholarships and grants are taxable. Though in some other article have been able to made some little explanation about them, in this article, the aim is to give you the Scholarship and grant that are taxable.
Note that the list I might make here, if any will be long before Scholarship was deemed not taxable no matter what the money was used for.
When it comes to Scholarship it is not taxable at all, no matter what the money was used for but what we would consider if it taxable is grant.
In as much as we see grant to be more like Scholarship but it still have little difference.
But one unique thing about that two is that there are both free money given, one for education, the other for either education or business.
Grant incomes are considered a taxable income under your federal Tax Return. What this means is that any money gotten from grant is taxable. Whatever you use the money for does not really matter, what is important is that, you paid your tax.
If by any time you feel confused about grant income being taxable, the best you can do is to do more research or contact the tax giver or better of check IRS and read the terms and conditions for Grant’s to be given.
IRS Scholarship Guidelines
As we have been sounding, Scholarship will not and never taxable but grant are, IRS have also given guidelines on how some one can qualify for Scholarship under the government and that guideline is what I want to talk about here.
This guideline is for both grant, student loans and Scholarship. See the guidelines below.
According IRS, Scholarship money is not taxable if it fulfils the following requirements.
- Your a candidate for degree in any eligible institution
- That the money was used to pay for tuition fees and other fees for enrollment.
- Used for other course related fees like textbooks and lecture dues.
If your Scholarship money satisfy the above condition then your free to go with your money. But for grant, any amount you recieve depends on how much b you will be given.
Employers Scholarship Requirements
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As an individual and private Scholarship provider, there is always a room for employees to get some quote in the Scholarship scheme, in that way they cam be able to put their children or them to complete their education.
Former employees may not be served with this opportunity but the people who are still working with the company will definitely get the opportunity.
How to Raise MONEY for Scholarship
To raise money for Scholarship or any other project, companies that have no much income will go to GoFundMe or crowdfunding people will have to start contributing.
Another way to raise funds for Scholarship is to meet the rich people in the city and they will invest in you and you will be able to get enough money for the Scholarship.
What Happens when you win Scholarship money
As a student, the first thing you will do is to pay your fees if the money was sent to you directly but if the money was paid to the school, you will report to the school for them to record all that is needed till you graduate and give you the balance if any.