<p>Hello, it's summer and I've been thinking of applying for summer jobs. However, I recently received an up to 25,000$ per year scholarship (Buick Achievers) and since a large portion of the scholarship will be used to pay for housing, the money is taxable and counts as income. </p>
<p>Does the money count as MY income or my parents? Before the scholarship my EFC is 6850 and my net costs after financial aid is 15800. I heard that student income affects EFC if the income is more than 2000 or so.</p>
<p>If I get a summer job assuming the scholarship counts as my income, the following year my EFC will rise right? Or does it not matter since my net costs is 15800 and my scholarship is up to 25,000</p>
<p>Thank you (=</p>
<p>Congrats on your great award.</p>
<p>Scholarship amounts in excess of tuition, mandatory fees and required books and supplies are taxable to the student. It is your income and you will have to file a return declaring the income next spring if the amount of all your income is enough to be required to do so. It sounds like you will be a freshman starting in the fall so only one semester of scholarship money should be reportable for 2013, so you may not need to file depending on the numbers. If you can be claimed as a dependent on your parent’s return, you would have to file if your total income is greater than about $6000.</p>
<p>You say most of this will be applied to housing etc. Did you get other aid that will be applied to tuition, fees etc?</p>
<p>Student income affects EFC if it is greater than $6000 or so. The part of your income from taxable scholarships won’t be counted against you for EFC.</p>
<p>You could give a more detailed breakdown of your costs and aid to perhaps get a more detailed reply.</p>
<p>Just to clarify the part about taxable scholarship amounts not counting against you for EFC. There is a question on fafsa that asks how much in taxable scholarships was reported to the IRS in your AGI. That amount is then subtracted from your income in the fafsa formula. For this years fafsa, 2013-14, it was question 43d.</p>
<p>@annoyingdad Thanks haha! I was really excited cause I was like losing every local scholarship in my area haha. I just looked up on my account and here’s a breakdown of the costs of attendance to the UC school I’m going too.</p>
<p>Tuition and fees 12,685
Housing and meals 14,454
Books and supplies 1,536
Transportation 807
Other education costs (Including USHIP insurance) 2,874</p>
<p>Total -> 32356</p>
<p>Grants:</p>
<p>Cal Grant A-- 12,192 (For Tuition and Fee’s)
Scholarship Recognition Award-- 3,390
UC Grant to purchase USHIP-- 1,323</p>
<p>Total → 16905</p>
<p>Net Costs: </p>
<p>15,451/year</p>
<p>Options:
Work Study 1,500
Federal Perkins Loans 1800
Federal Subsidized 3500
Federal Unsubsidized 2000</p>
<p>EFC: 6851</p>
<p>The school hasn’t added my “up to 25,000/year scholarship” yet, but it’s going to be split during the school year I believe. I emailed and the worker told me she thinks the scholarship works similar to Gates Millennium.</p>
<p>It’s likely that your school will reduce the amount of need-based aid they give you when they process that 25,000 scholarship, just FYI.</p>
<p>Anyways as other posters have said, any amount of scholarship/grant/assistance that exceeds tuition/fees/supplies is taxable income that you will have to report on your tax return. I would imagine this excess will be more than 6000 even without a summer job, meaning you’re legally required to file taxes. The money wont affect your EFC in the future but you will have to pay some taxes on it!</p>
<p>Which need-based grants are you talking about? The scholarship recognition one since that award is based on financial need/academics? They can’t reduce my Cal grant right?</p>
<p>Also so would it affect anything badly if I got a summer job not under the counter? Thanks!</p>
<p>I can’t answer concerning the CalGrant. If you’ve notified the school about the new award I would think any adjustments to your package would be posted relatively soon.</p>
<p>A summer job won’t hurt your EFC up to around $6000, not likely you would exceed that. It will increase any tax you owe next spring but that will just be a fraction of what you earn. It’s far better to have the extra money you earn.</p>
<p>What is the exact amount? “up to $25k” sounds vague. </p>
<p>The UC grant will likely go away. the Perkins and the subsidized loans will likely go away.</p>