Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and the Yahoo Answers website is now in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.

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

Relevance
  • 5 years ago
    Favorite 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 7
    5 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.

  • 5 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.

  • 5 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.

  • Judy
    Lv 7
    5 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.

  • tro
    Lv 7
    5 years ago

    room and board are NOT educational expenses and if you used that money for anything other than educational expenses it is taxable

Still have questions? Get your answers by asking now.