scholarships used for R & B?

Paying for College
1

<p>my son has a full-tuition, 4 year scholarship. does anyone have experience or advice about applying for additional scholarships if they were to be used for R & B. from what i understand any additional awards would be taxable, so i wonder if it's worth it. thanks</p>

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<p>Of course it would be worth it. Any amount over qualified tuition would be taxable, but not the first $5700 and even then it would be taxed at the student’s rate which is 10% unless they have other income. So if they get $8700 in scholarships, they would pay $300 in tax. Would you rather not get the scholarship?</p>

<p>No advice on where to look though.</p>

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<p>thanks 3bm103. a friend told me that in order to claim him as a dependent we must be paying 50% of his support. since his scholarship is full OOS tuition, plus he has a couple of additional scholarships, we’re paying less than 50%.</p>

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<p>My kid has a free ride and I claim him.</p>

<p>Certainly parents whose kids are getting full fa are claiming their kids.</p>

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<p>

Your friend has it wrong. The IRS rules for claiming your college student as a dependent are that he must not be providing more than 50% of his own support, *not *that you must be providing 50% of his support. (sounds almost the same, but is not. For instance if his total expenses for the year are $30,000 then he would be providing more than 50% of his own support if he was providing $15,001 toward his own support - as long as he is not, then you can claim him - you do not have to provide more than half his support). FYI the tax rules also state that Scholarships are not counted as providing part of his own support.</p>

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<p>Swimcat is right.</p>

<p>Your son is not providing more than 50% of his own support. And, the college isn’t claiming him as a “dependent.” ha ha.</p>

<p>My son doesn’t provide much of his own support…he only earns a few thousand per year. We pay for his phone, his health insurance, his car, his gasoline, his car insurance, his food/etc when he’s home, many of his clothes, etc. Our contribution is larger than his.</p>

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<p>^^thanks so much everyone. :)</p>