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    rek_col's Avatar
    rek_col Posts: 8, Reputation: 1
    New Member
    		  
    #1

    Apr 7, 2008, 10:39 AM
    Tuition, scholarship on 1040
    Hi,

    I would appreciate a little help with my taxes. I am a resident alien for tax purposes. My wife is a non-resident and we have elected to file taxes jointly as residents for 2007.
    For the year 2007 my wife had a scholarship amount of 7000 from her school. 14 % of her scholarship was taxed. We had to pay a total of 9100 dollars as tuition for her FALL semester. My wife did not have any other earnings. Her 1042-S form for the fellowship says the amount is non-qualified.


    I have the following questions:

    1) since the 7000 dollars fellowship was used for paying tuition isn't the fellowship amount
    Tax-free.

    2) If the answer to the first question is yes then can I also claim a education(tuition credit) for the remaining 2100 dollars not covered by the fellowship.

    Thanks for your help
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Apr 8, 2008, 02:34 AM
    1. If you are a degree candidate and if the financial aid (includes scholarship and fellowship) is for tuition fee, other fees, books, supplies and equipment, then it is not taxable. For a degree candidate aid for boarding and travel are taxable.
    If you are not a degree candidate, then all the financial aid is taxable.

    2. Yes.
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