<p>So, I'm a student at Penn that just found out that the government taxes you for any scholarships you receive from Penn for anything aside from tuition. So, if you are like me (poor w/ no financial support from your parents), you get to take out a loan to pay taxes on the scholarships you've received from Penn to pay for your dorm and meal plan. I'm looking at around ~$1,500 in taxes alone just for receiving a scholarship. Anyone else in the same boat? </p>
<p>:(</p>
<p>It's income. There you go. (Actually, as a student, you'll get out of much of the income taxes, so pay attention to that).</p>
<p>It's not really "income" in the sense that it's necessary to attend Penn. It's not as if I'm getting cash in hand to go blow on stuff.</p>
<p>Yeah, but it's not your definition of income that counts. It's the government's, and this counts as income in its official opinion. You've gotten free money - be glad. It's not necessary for you to get this money to attend Penn, and it's not necessary to attend Penn in the first place, either.</p>
<p>mattwonder, do your parents pay for your education or did you take out loans? Just curious...</p>
<p>You've posted three times. Try working a little harder to get my personal information.</p>
<p>On topic, I actually asked around about this matter. You get an exemption on the tax if you put the money toward educational purposes. You really shouldn't have a problem there. (This is also why work-study money is tax free, and why most students don't end up paying federal (or state, in many cases) income tax)</p>
<p>Trust me, mattwonder, there isn't much I wish to know about you- please don't assume I care to know who you are. I was simply curious as to how you are funded to attend Penn, because you certainly seem quite judgmental, and I have a feeling that you are nowhere near my situation. </p>
<p>Thanks for the productive advice, however.</p>
<p>
[quote]
this is also why work-study money is tax free,
[/quote]
Work study money is not tax free. It has to be declared on your taxes. You do not pay medicare and SS taxes on WS money but you do pay Federal and State taxes.</p>
<p>pennstudent - many students are in the same boat. My daughter has scholarships and need based financial aid. She has had to declare a certain amount this year on her taxes. She is just a freshman so it was not too much and she had only worked a little there was no a big tax impact - next tax year with a full years scholarships/grants and having worked a bit more (WS during school and a summer job) she will probably be hit with a tax bill. At least next year you will be prepared for it so can try and have some money set aside. I wish financial aid officers would let students know they might face a tax bill on scholarships and grants used to pay room and board - a lot of people are blindsided by it.</p>
<p>you also have to pay philadelphia wage tax, which can't be refunded (unlike state income tax withholdings for non-residents)</p>
<p>:( Dang... I'd better start saving for next year :(</p>