ROTC scholarship + other scholarships
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Pima
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This is off topic, but on topic. Meant for the HS lurkers/posters.
Instead of sitting outside the office while they are interviewing, set up an appointment with the bursars office to find out the tax implications. Agree to meet somewhere on campus, such as the student union.
~~~ This will allow them to be in a different setting. They will look like any other student on campus...Mom and Dad with a kid screams HS. They will be able to FFWD to next yr and play for a few minutes that they are a student there. It allows them to think about what just occurred and decide if they want to be there next year. It allows you to get guidance on the financial impact if they say sign me up.
Many that are going down this path may see R &B option as better because it may cost more, but in reality when it comes to taxes it can actually not be a better option.
~ Our DS was AFROTC, so R &B was not an option, but his other scholarships applied and went to R&B.
Also, although stipends are not taxable, any training during the summer most likely will be, so remember to be prepared to declare that money.
Instead of sitting outside the office while they are interviewing, set up an appointment with the bursars office to find out the tax implications. Agree to meet somewhere on campus, such as the student union.
~~~ This will allow them to be in a different setting. They will look like any other student on campus...Mom and Dad with a kid screams HS. They will be able to FFWD to next yr and play for a few minutes that they are a student there. It allows them to think about what just occurred and decide if they want to be there next year. It allows you to get guidance on the financial impact if they say sign me up.
Many that are going down this path may see R &B option as better because it may cost more, but in reality when it comes to taxes it can actually not be a better option.
~ Our DS was AFROTC, so R &B was not an option, but his other scholarships applied and went to R&B.
Also, although stipends are not taxable, any training during the summer most likely will be, so remember to be prepared to declare that money.
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Vista123
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It was in a letter (packet) from the university that goes out to all students who are accepted there. It is like a work sheet to figure out if you get any aid, and at the top lists all expenses.
There was an itemized list of all that is covered with a grand total at the bottom of ~60,000 per year, and next to each item listed it stated who is paying for it (AROTC or School).
Vista123
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Yep…we got that too. It almost sounds as if our kids are going to the same school! Projected cost of Attendance-$65,849!
This came though BEFORE he was awarded the scholarship, so I would imagine these numbers are going to change a whole lot!
When do you find out for the NROTC scholarship? My son applied in april and has not heard anything yet so far. He is getting kind of worried
Hi Kelsey55,
My son was notified last week…first through his portal and then followed by emails the following day.
All the best to you!
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When do you find out for the NROTC scholarship? My son applied in april and has not heard anything yet so far. He is getting kind of worried
Assuming his application is complete and has been boarded, then he will be automatically (re)considered at each board. He may not hear a final answer, positive or negative, until early April. Be working on solid alternate plans in the meantime. We did not get a negative reply until mid-April but our backup plan was in place and we had plenty of time to execute on it. It included NROTC as a Marine option college programmer and he won an in-school scholarship during his sophomore year.
You will most definatly want to double chck that.
The IRS phone people have been wrong before when it comes the the ROTC scholarship being used for Room and Board, it is a very vague area in the Tax instructions.
If you use the scholarship money for Room and Board your son will receive a tax form at the end of the year, a 1099 I believe, he will be required to list the payments as income for the year. On top of that he may be required to pay State income tax as well.
During the course of ROTC their may be times when a payment is made to the cadet that totals over $1000.00, such as CLIP, CULP, and LDAC if it's incuded with other payments. Any payments over this anount will be taxed and he will receive a W-2. Both my son's have had this happen when the CLIP was added the the Stipend, they had taxes including SS and Med Care taken out of the payment.
Be careful, every person I know that has used the scholarship for Room and Board has been required to pay taxes, just make sure you plan accordingly.
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+1 to Jcleppe. I have absolutely no doubt that any scholarship money used toward Room and Board, ROTC or not, is treated as taxable income. Whether there will be enough income to actually be required to pay taxes on it is another matter, but it usually is.
http://talk.collegeconfidential.com...rship-no-longer-considered-financial-aid.html
The link above is to another forum I found that contains new information to me and I didn't see any talk about it on this forum(granted I may have missed something). This link will lead you to a discussion on how ROTC scholarships are not to be reported on the FAFSA.
The link above is to another forum I found that contains new information to me and I didn't see any talk about it on this forum(granted I may have missed something). This link will lead you to a discussion on how ROTC scholarships are not to be reported on the FAFSA.
EDelahanty
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I am looking as I type at a W-2 resulting from CULP income. Social security and Medicare taxes were withheld, as was federal income tax.
EDelahanty
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I have to second Jcleppe's comments and suggest you re-check your info. After I saw your post, I thought I might have to re-file and ask for a refund. So I called the IRS too. After 30 minutes or so on hold, I reached the appropriate IRS rep.
As explained by Ms. J___ of the IRS, according to page 5 of Publication 970, room & board is not a Qualified Education Expense. Page 6 gives instructions on where and how room and board is to be included on the tax return.
It turns out I have correctly been including the R&B portion of Cadet Delahanty's scholarship as income but may have been putting it on the wrong line of the return.
But, it (room and board) is taxable. It specifically states so here:
http://www.irs.gov/publications/p970/ch01.html
Future2LtMom
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If memory serves, on the long form of Form 1040 it goes on Line 7 with SCH written next to it.
Ohio2015Parent
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When doing DS's taxes for the past 2 years(another helio-parent here) his scholarship(not ROTC, but National Guard & school Merit) money used to pay room or board was taxable income as stated by the other parents. Stipend, not taxable, but yes, reportable on the FAFSA. Oh, the joy of January/February tax season.......these kids (I have 3) all took calc in high school - how do I end up doing taxes & FAFSAs
) his scholarship(not ROTC, but National Guard & school Merit) money used to pay room or board was taxable income as stated by the other parents. Stipend, not taxable, but yes, reportable on the FAFSA. Oh, the joy of January/February tax season.......these kids (I have 3) all took calc in high school - how do I end up doing taxes & FAFSAs