My daughter earned a small music scholarship at her university. Accepting the scholarship, however, comes with a requirement to take paid private voice lessons. Is the entire amount of this scholarship deducted from the qualified college expense or only the difference between the scholarship and required private voice lessons?
Regards
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In article <0f403d7d-06b1-41a6-8788-6272d0412...@b15g2000yqd.googlegroups.com>,
Steve <snoll1...@gmail.com> wrote: >My daughter earned a small music scholarship at her university. >Accepting the scholarship, however, comes with a requirement to take >paid private voice lessons. Is the entire amount of this scholarship >deducted from the qualified college expense or only the difference >between the scholarship and required private voice lessons?
Did the scholarship come from the folk offerring private voice lessons? --
ArtKamlet at a o l dot c o m Columbus OH K2PZH
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> My daughter earned a small music scholarship at her university. > Accepting the scholarship, however, comes with a requirement to take > paid private voice lessons. Is the entire amount of this scholarship > deducted from the qualified college expense or only the difference > between the scholarship and required private voice lessons?
> Regards
As long as she uses the scholarship to pay for qualified higher education expense, it is tax-free. Qualified expenses are the tuition and fees for enrollment at the school and the expenses she incurs for taking a course. This would include course fees, books, supplies and equipment as long as the school requires all students taking the course to pay those expenses.
So... just apply the scholarship to the above expense and forget about the voice lessons.
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> On 12/14/09 8:43 AM, Steve wrote:> My daughter earned a small music scholarship at her university. > > Accepting the scholarship, however, comes with a requirement to take > > paid private voice lessons. Is the entire amount of this scholarship > > deducted from the qualified college expense or only the difference > > between the scholarship and required private voice lessons?
> > Regards
> As long as she uses the scholarship to pay for qualified higher > education expense, it is tax-free. Qualified expenses are the > tuition and fees for enrollment at the school and the expenses > she incurs for taking a course. This would include course fees, > books, supplies and equipment as long as the school requires all > students taking the course to pay those expenses.
> So... just apply the scholarship to the above expense and forget > about the voice lessons.
What does this last statement mean?
If the scholarship is only enough to cover tuition, then the cost of the voice lessons may be valid for the Hope credit, Lifetime credit, Tuition/Fees deduction, or QTP distribution depending on the conditions (like if the voice lessons take place from a qualified education provider, if they are required as a condition of enrollment at the university). Not sure -- haven't looked it up yet.
-- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >>
> On Dec 14, 11:57 am, Alan<sfcnm-...@yahoo.com> wrote: >> On 12/14/09 8:43 AM, Steve wrote:> My daughter earned a small music scholarship at her university.
>>> Accepting the scholarship, however, comes with a requirement to take >>> paid private voice lessons. Is the entire amount of this scholarship >>> deducted from the qualified college expense or only the difference >>> between the scholarship and required private voice lessons?
>>> Regards
>> As long as she uses the scholarship to pay for qualified higher >> education expense, it is tax-free. Qualified expenses are the >> tuition and fees for enrollment at the school and the expenses >> she incurs for taking a course. This would include course fees, >> books, supplies and equipment as long as the school requires all >> students taking the course to pay those expenses.
>> So... just apply the scholarship to the above expense and forget >> about the voice lessons.
> What does this last statement mean?
> If the scholarship is only enough to cover tuition, then the cost of > the voice lessons may be valid for the Hope credit, Lifetime credit, > Tuition/Fees deduction, or QTP distribution depending on the > conditions (like if the voice lessons take place from a qualified > education provider, if they are required as a condition of enrollment > at the university). Not sure -- haven't looked it up yet.
Read the original post. This person clearly has expenses in excess of the scholarship.
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