@blossom I was not referring to Bright Futures as far as the reporting goes, I just brought it up so that I could more accurately justify why I’d rather spend it on a laptop, books, etc. rather than strictly tuition. I also do not have prepaid, but rather a separate savings account for college.
And I am sorry for my use of the word “earn,” I did not mean to sound entitled or anything. There were some scholarships I received that were lower than the top amount, and I was nothing but absolutely appreciative. I don’t think any person who says they “earned” a scholarship has any ill-will, and they are always very grateful that they were chosen. And because most, if not all, of my scholarships were merit or essay based and not need based (I wasn’t eligible), wouldn’t it be fair to say that I did earn it for having the best essay and/or qualifications? But like I said, I am extremely thankful for every piece of aid that I received, because I didn’t get any help from my school and my family’s finances are not too great right now even though it looks fine on paper.
@twoinanddone
So would they tax my private scholarships, even if I cashed them myself? I remember one organization specifically wanted to write the check to me so I would receive the full amount and not be taxed on it. So how exactly would it be taxed if I reported it?
The amount of scholarships (if any) that exceeds the amount of qualified expenses (tuition, required fees, and required books and supplies) is taxable income to the recipient. Outside scholarships must be reported to the school, and the amount of scholarships that exceeds qualified expenses is reported on your tax return.
What I’m saying is even if the scholarship check is made out to you, you can still pay it to the school and have it credited to your student account.
Then instead of billing your family for $3000 they would only bill you for $500, because they would have $2500 from the scholarships.
If your parents have a 529 college savings account they can withdraw enough money for a computer, it is a qualifying educational expense for 529. Also once they know how much the books are they can reimburse themselves fir the books.
Taxable scholarships come into play if they exceed tuition, fees and books or are used for non qualifying expenses like room and board.
You should not have that problem since your tuition is $3000 and the scholarship less than that.
This student could be close to the taxable amount on a scholarships (but if her own earnings are low, likely to not owe any taxes). Tuition at Florida schools is low, around $6500. BF will be about $3000, but both only half for 2016. If the student also receives $2500 in outside scholarships, then she’ll probably have exceeded the $3500 or so in QEE.
OP, keep good records of your purchases for books, a computer, other supplies required by your classes. If OP’s parents are using Florida Prepaid for the other costs, those are tax benefited funds so that has to be considered too.
OP, they do not tax your award checks like a job would, you have to include the sums when figuring your taxes just like you would include independent contractor money or other interest or income.
Scholarships have to be reported to the school if you are receiving any financial aid. Federal regulations prohibit students receiving aid in excess of their “need.” Schools must include all resources in the financial aid package in order to make sure that need and cost of attendance are not exceeded … they can’t do that if students fail to report their scholarships.
If you don’t receive ANY aid, the financial aid office probably doesn’t care one way or the other … but they’ll help you get the check cashed (and if you already paid your bill in full, you’d get a refund). If you receive any type of aid at all, though, the aid office needs to know about your scholarships.
(1) As @kelsmom said - report the outside scholarships to your school, but if you don’t receive financial aid, then the outside scholarships won’t change anything. No one’s going to tell you how to spend them.
(2) It’s up to you, not the school, to figure out (at the end of the year) if you owe any state or federal income tax. The school will send you a report of how much you spent on tuition and fees, but that report won’t include the amounts you spent on books or other required supplies (such as goggles for chemistry class or art supplies for art class). Chances are that you won’t end up owing any taxes, but that probably depends on whether you work during the year, and how much you earn.