<p>DS has full tuition scholarship plus $2500 engineering scholarship, which was credited toward housing. He will now be living off campus. If he doesn’t spend that additional $2500, is it lost or is it refunded? </p>
<p>Refunded.</p>
<p>Is it refunded each year or after graduation?</p>
<p>each semester</p>
<p>but his dining dollars and course fees will be deducted first</p>
<p>and any scholarship money given above what is needed is taxable ;)</p>
<p>any scholarship monies used for room and board are also taxable…this is all at the student’s rate, not the parents’. </p>
<p>I think it is at the Parent’s rate.</p>
<p>Is that something new?</p>
<p>The child puts it on his own tax form.</p>
<p>m2ck…This was something new for 2013. </p>
<p>The child does put the taxable scholarship on their own tax form but they also fill out Form 8615 to figure the tax owed.</p>
<p>The Title of the form has changed this year from Investment Income to Tax for Certain Children Who Have Unearned Income.</p>
<p>Here’s the instructions:</p>
<p><a href=“http://www.irs.gov/pub/irs-pdf/i8615.pdf”>http://www.irs.gov/pub/irs-pdf/i8615.pdf</a></p>
<p>Throughout the instructions this year everything refers to unearned income vs. investment income. The definition of unearned income on page 1 clearly includes taxable scholarships/grants not reported on a W-2. This is a change from previous years.</p>
<p>If you look at the 8615, lines A-C come off the parents return, as well as lines 6-10 for determining the parent’s rate </p>
<p>Yup – big topic of conversation on CC during tax season this year was this tax form change. Some of the free online tax programs got it right at the beginning of the season and correctly used the parent rate per the revised IRS instructions and others didn’t calculate it correctly until they made changes very late in the tax season. This made a $2000 difference in taxes for each of my girls. </p>