Are scholarships taxable, are grants taxable — Do I need to report scholarship and grant money I received as income?
If your scholarship or grant was for study or research in the pursuit of a degree, the money used to pay your qualified tuition and related expenses isn’t taxable.
However, scholarship or grant income is taxable if:
- The scholarship or grant was for general living expenses to a non-degree student.
- The grantor requires you to perform services in return for granting the scholarship or grant.
- The grantor requires you to pursue studies, research, or other activities mainly for the benefit of the grantor.
- The scholarship or grant has a condition that you perform past, present, or future services for the grantor.
- The services you perform are subject to the direction or supervision of the grantor.
Do you have to pay taxes on a gift? Learn about gift tax exclusion rules with help from the tax pros at H&R Block.
If you’ve contributed too much to your IRA for a given year, you’ll need to contact your bank or investment company to request the withdrawal of the excess IRA contributions. Depending on when you discover the excess, you may be able to remove the excess IRA contributions and avoid penalty taxes.
Many are surprised to learn that even side gigs come with a tax price. H&R Block Tax pro's have arranged expert tips for those who owe direct sales taxes.
Learn more about IRS Form 2439 and get tax answers at H&R Block.