This discussion was created from comments split from: Potential SUNY student, need help with Excelsior, picking a college without too much debt.
Can you guys give me some info on the Excelsior? I spoke with the HESC and we fall into the parameters for the income and other requirements. It says there are income tax ramifications for receiving the funds. Does anyone have any experience with that??
@mom2collegekids I am nervous about sending my son to a SUNY and counting on the excelsior. They tell you tuition is “free” but it also says the ES is capped at $5500. Tuition is $6500 there abouts plus $3500 in “fees”. It’s such a new program I’m hesitant about counting on it at all!
Since Excelsior only pays for tuition, the scholarship should not be taxable.
@mommdc
This paragraph is to what I refer:
Award Amount*
A recipient of an Excelsior Scholarship may receive up to $5,500.
To determine the award amount, the 2016-17 resident tuition rate charged by SUNY ($6,470) or CUNY ($6,330) will be reduced by the amount of certain other student financial aid awards which an applicant has or will receive for the academic year, including a NYS Tuition Assistance Program (TAP) award and/or federal Pell grant. The Excelsior Scholarship will cover any remaining tuition liability up to $5,500; and a tuition credit will cover any remaining tuition expenses not covered by the Excelsior Scholarship.
*Note: Any award payment received may have tax implications. Any questions regarding this should be directed to a tax professional, the Internal Revenue Service, or the NYS Department of Taxation and Finance.
But if you receive Excelsior for tuition, then only fees and books would be available to claim for AOTC.
I don’t know about NY, but for federal tax purposes I can’t see how it would be taxable if it is applied to tuition costs only.
See Publication 970 chapter 1
@sybbie719 do you have some experience with Excelsior to share with OP?
@mommdc this is NY and they would take your breathing if they could! LOL but I will try to find out more. We are heading to Ualbany this weekend for an accepted Students’ event and will see if I can nail any jello to the wall.
TAX I mean!
Excelsior is a last payer scholarship that kicks in after TAP, PELL, Stem and all other NYS scholarships.
It can only be used for tuition, which is a qualified educational expense and your student will not have to pay tax on the scholarship.
However, you child may receive other scholarships, and determine how to stack those scholarships, where your son may end up using merit money for room and board (which are taxable expenses)