Scholarship money spent on tuition is tax-free — but money for room & board isn’t.

Scholarships Tax Fact 101: Some Scholarships Are Taxable

Here’s an important fact for students and parents: Scholarships aren’t always tax-free!
Many students assume all scholarship money is non-taxable, but the IRS has rules — and if you don’t follow them, you could owe unexpected taxes.

✅ Got scholarships or grants? Let’s make sure you’re reporting them correctly!

📚 When Scholarships Are Tax-Free

Scholarship money is generally tax-free if:
✔️ You’re a degree candidate at an eligible school
✔️ The money is used for qualified education expenses — like tuition, required fees, and course-related books or supplies

⚠️ When Scholarships Are Taxable

Scholarship money is taxable if it pays for:
❌ Room and board
❌ Travel or optional fees
❌ Stipends for living expenses
❌ Payments for teaching or research work (these are often taxed like wages)

If you received a scholarship that covers non-qualified expenses, you must report that portion as income on your tax return.

👉 Not sure if part of your scholarship is taxable? Book your free student tax checkup here!

📝 What If You Missed It Before?

If you didn’t report taxable scholarship income in a past year, you might need to file an amendment — or you could risk penalties if the IRS catches it later.

✅ Ask us how to fix old tax returns here!

✅ How We Help Students & Families

At Acceptance Tax & Accounting, we help students and parents:
✔️ Understand what parts of a scholarship are taxable
✔️ Report it correctly to avoid surprises
✔️ Claim valuable education credits and deductions
✔️ Fix old tax mistakes if needed

📞 Click here to book your Student Tax Filing today!

Don’t let a scholarship turn into a tax headache — file smart and keep your refund safe!