I’m probably too late, but I have a question.
I’m on a full ride that covers room and board. My school aid covers all qualified expenses, but this is an outside, private “unmet needs” scholarship, which covers the room and board for me (about 10 grand) Why is this portion taxable? To what extent can I count this as a “gift”? Meaning, if someone gives me less than $14,000 in gift money, it’s untaxed. But if someone pays my institution just for room an board, it is taxable? I have a hard time believing this to be true.
Also, I read the definition of scholarship according to the US code, and it says “. However, the term does not include any amount provided by an individual to aid a relative, friend, or other individual in pursuing his studies where the grantor is motivated by family or philanthropic considerations.” My scholarship is funded by Bill Gates. Would this exempt me?
I contacted H&R Block. Bums. I contacted the IRS…they don’t know…