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I am a student at Georgia Tech in Atlanta, GA. I get a state scholarship from lottery funds that covers tuitions. In addition, I have a secondary scholarship used for housing, food, parking, etc. During the summer, I have a job that puts me making enough to file.

According to the 1040 and 1040EZ information on taxable income, I have to pay taxes on my summer job money (customary) and my second SCHOLARSHIP! I've never heard of someone paying taxes on a scholarship, but according to those forms and the IRS telephone helpline, I have to pay up for getting a scholarship that isn't used for tuition.

I don't want to just ignore the law; I don't mind paying my share. But doling out to the government isn't a common hobby. Does anyone have some insight on this that I might not be aware?

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