<p>Hello all,
I'm an incoming Drexel freshmen. I've known that student who receive any kind of scholarship should expect to be taxed. So can anyone please tell me how many percent of tax will be charged on my scholarship money if I receive a Dean's Scholarship? Thank you all in advance.</p>
<p>You shouldn’t be subject to tax if your scholarship is used for tuition, fees, books and supplies. From the IRS: </p>
<p>Qualified scholarship and fellowship grants are treated as tax-free amounts if the following conditions are met:</p>
<p>You are a candidate for a degree at an educational institution that maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities; and
Amounts you receive as a scholarship or fellowship grant are used for tuition and fees required for enrollment or attendance at the educational institution, or for fees, books, supplies, and equipment required for courses at the educational institution.
[Tax</a> Topics - Topic 421 Scholarship and Fellowship Grants](<a href=“http://www.irs.gov/taxtopics/tc421.html]Tax”>Topic No. 421, Scholarships, Fellowship Grants, and Other Grants | Internal Revenue Service)</p>
<p>Yes, middleoftheroad is absolutely correct.</p>
<p>As long as the scholarship amount does not exceed tuition, fees, books, and supplies, you are good.</p>
<p>This is a thread that discusses the tax consequences if you do use your scholarship for something other than what we stated above, e.g. if you use it for room and board: </p>
<p><a href=“http://talk.collegeconfidential.com/financial-aid-scholarships/1331071-scholarships-taxes.html?highlight=tax+on+scholarships[/url]”>http://talk.collegeconfidential.com/financial-aid-scholarships/1331071-scholarships-taxes.html?highlight=tax+on+scholarships</a></p>