ROTC and Partial University Scholarship

Discussion in 'ROTC' started by Bill1899, Aug 14, 2013.

  1. Bill1899

    Bill1899 Member

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    I am hoping someone has seen this issue before - I was awarded a 3 year Army AD scholarship which pays full tuition. The college I am attending gives a free room to ROTC students. So I only need to pay $3600 per year for the meal plan after freshman year.

    Here is the issue - The college has also awarded me a $12,000 per year "Presidential Scholarship" - "renewable for 4 years, total value $48,000". What will happen sophmore year when the ROTC credits full tuition and school credits the room fee to my account. Will the school still give me the $12,000? Can I use this money to pay the meal plan fees. Can I use any of the extra money for other college expenses? (transportation, books, computer, etc)

    Thanks for your help.
     
  2. USMAROTCFamily

    USMAROTCFamily Member

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    You will need to check specifically with your University. Some University merit scholarships are only available to use toward tuition only and cannot be used for room and board. This is one reason why some ROTC Scholarship winners, who already have full merit scholarships from their university with opt to use the ROTC scholarship, instead, for the room and board. I believe only Army ROTC gives this option, though. Some schools will allow the "layering" of multiple scholarships and will allow you to use them for any college expense.
     
  3. Pima

    Pima Parent

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    I agree with USMA, contact your bursar's office, and also discuss how it will work with your AROTC scholarship.

    For example, AFROTC has very specific key wording....tuition only and for certain ones it says, UP TO X amount. In your case at our DS's school, your college merit would only cover the 3600, out of pocket. It was not a check written to you, and you got to keep the change. The reason why was the wording of UP TO. For example when our DS lived off campus he could not use any of his merit for his housing costs or food off campus. He could as a student, even living off campus buy a meal plan, which the merit would have paid for.
     
  4. T-Bone

    T-Bone Member

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    It does depend on the University. My DS is in the same boat and he gets the remaining amount credited to his account. He can use it for meal plans or anything else he would like to. It is a very nice benefit to have. What State are you in?
     
  5. QA1517

    QA1517 Member

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    Keep in mind, if I am not mistaken, which I could be, that any money's / scholarships not used directly for tuition are taxable.

    If you get your room and board, books, meals paid for then you will owe taxes on that amount. If you get an extra $12k, be sure to hold some back for tax purposes.
     
  6. QA1517

    QA1517 Member

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    correction, books and fees are not taxable, but room and board is as well as extra cash
     
  7. sheriff3

    sheriff3 Member

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    Just to clarify the stipends paid to ROTC cadets is not taxable correct?
     
  8. QA1517

    QA1517 Member

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    Correct
     
  9. Pima

    Pima Parent

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    Rule of thumb for the military.

    If it is an allowance, it is not taxable.

    Books, stipends are allowances.

    I..E. AD world BAH, BAS.

    Basic ALLOWANCE for Housing. Basic ALLOWANCE for Subsidy.
     
  10. MSFaygo

    MSFaygo Member

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    Then wouldn't R&B be an allowance for housing (not taxed).
     
  11. kinnem

    kinnem Moderator

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    No. Any scholarship monies, regardless of source, that is used for room and board, is taxable.
     
  12. USMAROTCFamily

    USMAROTCFamily Member

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    It's taxable to the student and not to the parent, correct?
     
  13. MSFaygo

    MSFaygo Member

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    This is another example of the great info that can be found on this site!

    I was (mistakenly) under the impression that R&B wasn't taxable income because it isn't paid directly to the cadet.
     
  14. kinnem

    kinnem Moderator

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    Yes, taxable to the student.
     
  15. goaliedad

    goaliedad Parent

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    Another simple way to think of what is taxable when it comes to college moneys (with or without ROTC):

    Any moneys received by the Bursar from sources other than the student/family and paid by the Bursar's office to the student directly or for items not considered required for the degree will be reported as taxable income to the student on a 1098.

    Note that for ROTC Scholarship money is paid to the Bursar's office regardless of whether it is used for tuition or R&B. If you take the R&B and use it for non-campus housing, the Bursar will cut you a check but will note that amount in the 1098.

    ROTC book and stipend moneys are paid directly to the student. The Bursar does not receive this money so they cannot issue a 1098. The Government does not issue you a 1098 for book and stipend moneys paid. This is a tell-tale sign that it is not taxable income.
     
  16. EDelahanty

    EDelahanty Member

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    Some schools may do it differently. We receive each year a 1098-T informational form from the university. The number on it is a single ginormous figure which is evidently the sum of both (a) the taxable R&B grant from the school, and (b) non-taxable ROTC scholarship and fees, as well as possible (c) miscellaneous unidentifiable items. We then have to figure out the taxable portion that must be reported.

    Mrs. Delahanty knows when the 1098-T is received in our household because she hears someone shriek "Wholly crap!" or words to that effect. This is followed by a panicked e-mail to Cadet Delahanty asking him for the R&B numbers in his bursar's account.
     
  17. paradoxer

    paradoxer Member

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    And don't forget that the 1098-T is usually worthless

    Be advised that because of the billing cycle of the school the 1098-T may be of little help to you, in fact most are not, because of the difference between calendar and academic years when it comes to timing of amounts billed and paid. Also most schools don't report actual amounts paid only billed. This is where your math skills are actually important unless of course you want to pay someone else but you will still need to generate the source documents for them to do the math.
     

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