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Taxable scholarships.?
For the 2013 tax year, I was not aware that I had to pay taxes because my scholarships were greater than my qualified expenses (I used $4,000 of it to pay room and board and a meal plan). For 2013, I only made $1,500 from working. So, total taxable income was $3,500. I was told by one tax specialist that I have to file a return (I did not file one at the time, because I did not have any taxes taken out), and then will have to pay taxes and possibly fees and interest on the room and board. Then I was told by another tax specialist that since my total taxable income was under the income threshold, I do not have to worry about it. Can someone please tell me what I actually have to do, and I have to pay taxes, what I can expect to pay?
6 Answers
- ninasgrammaLv 75 years agoFavorite Answer
You do not have to file a tax return. In 2013, your taxable scholarship is considered earned income, and if your only income was the scholarship and $1,500 of wages, you are under the filing threshold.
See IRS Pub 17 for 2013.
- ?Lv 75 years ago
I'd guess that you only need to file if you were a dependent in 2013 (because the threshold is much lower for dependents). But I have no idea how scholarships are taxed. You're not going to get better answers from an online forum than from tax experts. Maybe go back to the first specialist and ask about the threshold.
- StephenWeinsteinLv 75 years ago
First, stop listening to anyone who claims to be a "tax specialist".
Second, the "income threshold" isn't the same for everyone. It depends on your marital status and whether your parents (or anyone else) could claim you as a dependent.
Realistically, the best option is to fill out the tax return. If it says that you would have to pay if you filed, then you are over the threshold and have to file. If it says that you wouldn't have to pay, then definitely file, because it won't cost you anything and it limits the time that they have to claim that you do owe them money (they generally get 3-6 years if you file but forever if you don't file). Either way, file.
- Max HooplaLv 75 years ago
Taxable is when it is added to enough other income to make something taxable. From what you wrote your taxable income will be zero.
- JudyLv 75 years ago
For 2013, you had to file if you had over 6100 income. As long as social security and medicare were taken out o f the 1500 you earned, you're ok.
- troLv 75 years ago
room and board are NOT educational expenses and if you used that money for anything other than educational expenses it is taxable