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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.

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