DS received $5,000 from the university that apparently they can distribute at their discretion. Is this taxable? We will certainly consult out tax professional but I want to see if anybody here has any experience with this sort of thing? Thanks.
DS received $5,000 from the university that apparently they can distribute at their discretion. Is this taxable? We will certainly consult out tax professional but I want to see if anybody here has any experience with this sort of thing? Thanks.
I think it probably depends on how it's spent. Since it presumably will go toward something other than tuition, then yes it would be taxable. That's my understanding anyway. Also, I expect you could report it on your DS's taxes. Assuming his income is pretty low (as is most student's) the amount owed, if anything, shouldn't be too big a deal.
Of course tax professionals need to make a living as well and are always worth consulting. The government WILL get theirs!