<p>Are scholarships considered taxable? </p>
<p>Does it depend on who the check is made out to? Some of my scholarship checks are made out to the school while others are in my name.</p>
<p>Scholarships that are in excess of the TUITION costs are considered taxable income. Scholarships that cover tuition are not taxable.</p>
<p>My scholarships are under excess, BUT I don't plan to use all the money for tuition. I'm probably investing some into buying a laptop. Is that taxable?</p>
<p>Yes, only scholarships used for tuition are not taxable. If you use the money for anything else you are required to report it. When you do, make sure you include a note to the IRS that states that it's a scholarship, otherwise they might ask you to pay self-employment tax too.</p>