Does a scholarship count as income?

Does a scholarship count as income?

I’m a 20-year-old college student in North Carolina who was awarded a full-ride scholarship based on need. I filed my tax return this year along with my W2, as I have every year since I was sixteen. Additionally, I found out recently that scholarship money is taxable after hearing from friends about it. After discussing this with my parents, they assured me that I shouldn’t worry about paying taxes, but now I genuinely feel afraid.

In 2022, I made about $5,000 from my job (of which roughly half came from a work-study position) and received about $12,500 back from my financial aid provider. I’ve already filed my taxes online and received my refund using only my W2, and my father has classified me as a dependent. As an

Are you a full-time student? If so, it isn’t taxable. If not, and you were part-time, you can claim up to the amount paid for tuition and other program-related expenses.

Generally, scholarships are not considered taxable income for students if used for qualified educational expenses but if the scholarship is used for room and board, travel, or optional supplies, that money may be considered taxable income.