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The following is general information regarding student financial aid and income taxes, which should be used by students when filling out their federal and state income tax forms.
- Any portion of grants and scholarships (such as PELL, Missouri State Grant, SEOG, CWSP, C of O Workstudy, C of O Grant, etc.) which pays for Cost of Education (tuition), fees and books is not taxable, and not includable as income on the student’s federal and state tax forms.
- Any portion of grants and scholarships (academic, athletic, Bonner, ROTC, etc.) which pays for room and board is taxable. In addition, for students who work on campus during the summer to pay for the coming year’s room and board, the value of that room and board ($4,700 for 2008, plus $1,760 for room and board during the 12-week Summer term) ($5,000 for 2009, plus $1,785 for room and board during the 12-week Summer term) is taxable because such work is considered an educational scholarship, and should be included as income as taxable scholarship on the student’s tax forms. Education loans are considered to be neither a grant nor a scholarship, and are not taxable.
- The IRS Hope Scholarship and Lifetime Learning tax credits are available for 2008/2009 expenses for Cost of Education (tuition) only. Since only part-time students at C of O pay for COE, it appears that only part-timers will be eligible for the tax credit. Expenses for room and board, books or the Incidental/Health Fee do not qualify for the tax credit.
- Any student financial aid described above which is determined to be taxable income should be included on the student’s federal and state tax returns, as required by law. The College does not employ either a tax accountant or an attorney, and therefore cannot offer individual tax-related counsel to students.
More information concerning scholarships can be found on the IRS website at www.IRS.gov.
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