Could Your Extra Money Be Nontaxable?

Scholarships

If you receive scholarships for school, it may or may not be taxable. Most individuals who receive scholarship money to pay for their tuition for a degree are not going to pay taxes on the money. The caveat is you must use the money to pay for your tuition, and if you are not a degree candidate you receive a scholarship for another reason, you might pay taxes. If this money is designed to pay for your housing, for example, it’s not being used for tuition, and as such is taxable, though it can often be used as a deduction. However, there are also tax benefits allowing you to earn credit if you aren’t earning scholarship money and you are paying your own tuition and fees.

Continue reading to learn how to use carpooling costs to your advantage during tax season.