Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
My son qualifies for a small amount of Federal Work/study money in his financial plan. Since we live in Mn. and he goes to school in Indiana, I thought it would be too much of a hassle to fill out Ind. income tax forms as well as the Mn. state forms (he makes very good money in the summer) for the small amount of money he would make by working on campus under the Federal Work/Study program. Does what LaMar wrote mean that he wouldn't have to pay income taxes on this money?

This is probably one for the tax board. State tax laws are a whole other ball of wax but in most states, the form to get back your tax money is fairly simple. The other issue is that by declining work-study, you have basically declined part of the aid package. Since your son went to school without the work-study, it may leave the impression that you didn't need that part of the award. If your son had an award of say 100 hours per term(about 10 hours a week) @ say, $6 an hour, that wouldn't have given him spending money during the school year ?

getting on soapbox Does your son think $600 is a small sum of money ? Have you calculated teh saving in interest on a reduction of %600 in the amount of loans? off soapbox:)

I'll also head off to see if I can find more information about taxing of work-study money.

Jacki
Print the post  

Announcements

Paying For School Guide
Trying to Tackle Tuition? The Motley Fool's Guide to Paying for School will help you fight those rising education costs.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.