Is your scholarship taxable?

This time of year, many students are wondering if their Jeannette Rankin Foundation scholarships should be reported on their tax returns. It depends. A scholarship is tax free if it was used to cover essentials like tuition, fees, supplies and books. But, if your scholarship paid for incidental or living expenses, you’re required to report it.

According to IRS Publication 520:
“An amount you receive for incidental expenses is not a tax-free qualified scholarship. Incidental expenses are expenses for items that are not required for either enrollment or attendance at the educational institution. Incidental expenses include room and board, travel, research, clerical help, and equipment. If all or part of your scholarship is taxable and you are required to file a tax return, you must report the taxable amount.”

That’s the answer in a nutshell, but you should talk to a tax professional if you have a detailed question. Check out this site if you want to do more research on your own.

Paying for college

If you're a prospective collegiate student, you've got a load of things on your mind. Once you've finished filling out and submitting college applications (and receiving acceptance letters!), the next thing to work on is a daunting task for the typical student. The high cost of college tuition and fees amount to a huge problem for many families, and paying for education expenses can become a disheartening experience. But, take heart - solutions can range from scholarships to state and federal grants and student loans.

In today's technologically advanced world, the process of searching for financial aid has become easier. The web's resources are unending: simply searching Google's search engine with the words "Paying for College" turns up 1,800,000 results!

Some of the more prominent websites to try are:

1. www.collegeboard.com/student/pay/index.html
2. www.fastweb.com
3. www.scholarships.com
4. www.wiredscholar.com

Most importantly, don't give up looking! The stakes are worth thousands of dollars.

Managing your money online

Jeannette Rankin Foundation knows that managing your finances is a challenge for college students, especially adults who are earning a degree while running a household. We recently found a tool at www.mint.com that can help you manage your money. With the online tools at Mint, you can set up your household budget, get suggestions for lowering your monthly bills, and even find a lower interest credit card. Mint can automatically pull together your bank, credit union and credit card data and provide up-to-date and accurate views of your financial picture. Best of all, using Mint is free.