How do scholarships work with regard to taxes?
The Tax Reform Act of 1986 made changes to the Internal Revenue Code that directly affect scholarship awards. Scholarships received that exceed your total cost of tuition and required fees, books, and educationally related supplies and equipment are subject to federal income tax. Other costs such as room and board, transportation, and personal expenses are not allowed. You are encouraged to keep your receipts and copies of University bills. Questions regarding taxation of scholarships should be addressed to the local IRS office, where you can obtain IRS Publication 970. What makes a good essay? When you are applying for scholarships to help with your college educational expenses, a good essay is an extremely important part of your application. Most applicants can boast of memberships in clubs and sports but the essay is one place where you can describe you unique qualities. A good essay should: • be typed. • be approximately one page in length. • tell WHY you are SPECIAL; WHY you got i
