Do you have to pay taxes on merit scholarship/grant?

[Mom2aphysicsgeek]

@debbie7452

haven’t filed for my student yet. I am in this same boat. One thing about a summer REU that complicated things for me this year is that it was not paid as W 2 or even 1099 wages. Our school paid it as a grant. So even more taxable scholarship money. It didn’t use to be so horrible when they paid at their own rate.

EEK!! Serioulsy??? Does that mean that amt is paid at the kiddie tax rate as well? That is ridiculous! Poor ds. Wait until I tell him that he is going to have to bank all of his earnings to pay for the taxes.