Message Font: Serif | Sans-Serif
No. of Recommendations: 0
As far as I know, you won't pay any tax if the scholarship money is used directly to offset tuition. Anything you get past that (such as housing, etc...) may need to be reported as income on a tax form. But even then, the tax is likely to be minimal unless he has other income as the standard deduction (even if he's a dependent) is at least several thousand dollars. But check with your college financial aid office.

I think that if your kid can get into one of the top five or top ten schools, the difference in lifetime income, education, satisfaction, networking, and prestige is so vast that practically no amount of difference in cost can match it.

With such high scores, unless he doesn't want to there's no reason your son shouldn't attend one of the top 5 or top 10 schools. Even if he goes into debt heavily to do so, it's likely to be worth it as his first job will probably cover the loan payments quite well. Moreover, not only are college loans very attractive in terms of financing rates, they're also tax deductible (which means they're even cheaper).
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.