<p>If the estimated cost of tuition will be $13,000 and ds received a $8k merit scholarship and a few local scholarships totaling $2k, will any portion of the merit aid/scholarships be taxable or not since they total less than the cost of tuition? (Room & Board is over & above this). I don't understand the taxable/not taxable rules.</p>
<p>It’s all non-taxable because the total amount in scholarships is below tuition/fees/books:</p>
<p>[Taxable</a> Income for Students](<a href=“http://www.irs.gov/individuals/students/article/0,,id=96674,00.html]Taxable”>http://www.irs.gov/individuals/students/article/0,,id=96674,00.html)</p>
<p>I should add, any need based grants are also counted with the scholarship money.</p>