<p>Hello, I have used this forum in the past to search for answers to my questions and it has been very helpful! However, I now registered so that I could post because I can't seem to find a secure answer to my question.</p>
<p>So basically, I have a full ride scholarship to my school. As I was filling out my FAFSA for this year I noticed a section asking for any scholarships that I reported to the IRS. This reminded me that I will most likely have to do taxes this year for the room and board portion of my scholarship.
So my first question is if my parents can still be claiming me as a dependent on their tax returns since they housed and fed me for all of summer and holidays (which I think adds up to more then 50% of support)? If so do I still file separately? </p>
<p>All of my scholarship money goes through the school so they always refund me the amount for room and board and whatever else is left over that does not pay for tuition and fees. Here are my numbers:
Using the statements my school provides I was refunded a total of $14,594 (to use for room and board and anything else) for 2011. This includes my Winter 2011,spring 2011 and Fall 2011.
So from what I have read so far, this is the amount that needs to be reported as "wages". If this is right then won't I have to pay about $1,400 in taxes if not more? What deductions and credits can I get? Do books count? Also in my FAFSA if I put that $14,594 was my AGI and then also put the same amount as "Student grant and scholarship aid reported to the IRS in your adjusted gross income" will this affect my EFC greatly?</p>
<p>I appreciate any help at all! I am really stressing out about this because I really don't know how to go about doing this</p>
<p>Do you parents use an accountant for their tax return? That might be the place to start with your questions.</p>
<p>Well they use places like H&R block. I was hoping to have some knowledge before I go in and ask them. Also, I want to put as accurate information into my FAFSA so that I get a good estimate for the EFC.</p>
<p>Your school will issue you a 1098 and you will file your return. Qualified education expenses include tuition, fees, and course materials (books, lab supplies, etc.). If you have no other income/adjustments, the balance will be your AGI. Your standard deduction (was $5700 for single last year) is then deducted from that and the balance is taxable income. Your federal tax rate will be 10%, so figure around $900 will be due to the IRS. State taxes are another issue but vary widely.</p>
<p>You can find more info online in IRS Publication 970.</p>
<p>Is this a merit scholarship or only a need based scholarship. If it is merit, do you still need to fill out the fafsa for this year?</p>
<p>Well I have merit scholarships but the scholarship that fills the gap for the remainding cost of attendance is need based.
Thank you sk8rmom for your help. So does this mean I have to file as independent? Also with my AGI being the balance, on my FAFSA should I place that same balance under the “Student grant and scholarship aid reported to the IRS in your adjusted gross income” since I am going to file?</p>
<p>You will not file FAFSA as an independent student unless you answer yes to one of the qualifing questions (married, over 24, etc.). You will simply file your own tax return, as many/most students with income do. Yes, report the grant/scholarship info in the second question as well. The EFC formula backs out that income so that it won’t raise your EFC.</p>
<p>I have submitted my FAFSA and my EFC did stay the same! Thank you so much for your help! :)</p>