Is work-study income taxable — Or is federal work-study tax exempt income if I’m a full-time student?
Since your work-study program income is a taxable scholarship, you must report the income on the wages line of Form 1040.
You don’t have to include in your income the part of any scholarship or fellowship that’s payment for teaching, research, or other services if you receive the amount under the:
- National Health Service Corps Scholarship Program
- Armed Forces Health Professions Scholarship and Financial Assistance Program
For scholarship, fellowship or federal work-study tax exempt status, you must also:
- Be a degree candidate at an eligible educational institution
- Use the part of the scholarship or fellowship you don’t include as income to pay qualified education expenses
The first step in how to calculate long-term capital gains tax is generally to find the difference between what you paid for your property and how much you sold it for —adjusting for commissions or fees. Depending on your income level, your capital gain will be taxed federally at either 0%, 15% or 20%.
Learn more about the adjusted cost basis method of selling shares and get tax answers at H&R Block.
How much investment income can children earn before paying taxes? Learn more from the tax experts at H&R Block.
Learn how much you can sell before paying tax with advice from the tax experts at H&R Block.