New tax plan and tuition waiver

General Discussion for SMART Scholarship Recipients

New tax plan and tuition waiver

Postby Guest0123 » Thu Nov 30, 2017 7:34 am

Does anyone know if our tuition payments are considered a tuition waiver under the new tax plan? If so, this would mean that it is now considered taxable income (despite never receiving the money ourselves) and we will have to pay taxes on it.
Guest0123
 

Re: New tax plan and tuition waiver

Postby CDMajor » Thu Nov 30, 2017 5:15 pm

Can someone clarify please? I thought this was only for graduate students.
CDMajor
 

Re: New tax plan and tuition waiver

Postby kbl2017 » Thu Nov 30, 2017 6:26 pm

This is only for grad students. Since our tuition is paid for by someone we are considered a scholarship. Waivers are generally what a school does if you're working for them in exchange for free tuition i.e. TA's and RA's. While we should still worry about the many people this will hurt, it should not hurt us.
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Re: New tax plan and tuition waiver

Postby gradStudent » Fri Dec 01, 2017 12:58 am

There are lots of grad students who are funded by SMART. But, no it shouldn't impact grad students who have SMART. We don't get tuition waivers, SMART pays our tuition
gradStudent
 

Re: New tax plan and tuition waiver

Postby Guest0123 » Sun Dec 03, 2017 10:59 am

Thanks for the clarification. I am a grad student so this topic has been very pressing for many in my cohort. Glad I'm safe. Sad for the rest of them though.
Guest0123
 

Re: New tax plan and tuition waiver

Postby scheffc » Mon Dec 04, 2017 3:32 pm

Has anyone confirmed any of this with SMART? Just because SMART pays for our tuition doesn't mean that won't be changed and added to income for tax purposes. I looked at having a private company pay for my graduate schooling and that would have happened: I would have needed to include all money paid by the company as additional income for tax filing purposes. I'm concerned the same thing could happen here.
scheffc
 

Re: New tax plan and tuition waiver

Postby CSMajor » Mon Dec 04, 2017 3:35 pm

scheffc wrote:Has anyone confirmed any of this with SMART? Just because SMART pays for our tuition doesn't mean that won't be changed and added to income for tax purposes. I looked at having a private company pay for my graduate schooling and that would have happened: I would have needed to include all money paid by the company as additional income for tax filing purposes. I'm concerned the same thing could happen here.


I would cry because then I wouldn't be able to afford living. That'd make 50% of my stipend go to taxes.
CSMajor
 

Re: New tax plan and tuition waiver

Postby sdflldsfl » Mon Dec 04, 2017 6:04 pm

CSMajor wrote:
scheffc wrote:Has anyone confirmed any of this with SMART? Just because SMART pays for our tuition doesn't mean that won't be changed and added to income for tax purposes. I looked at having a private company pay for my graduate schooling and that would have happened: I would have needed to include all money paid by the company as additional income for tax filing purposes. I'm concerned the same thing could happen here.


I would cry because then I wouldn't be able to afford living. That'd make 50% of my stipend go to taxes.



Likely we'd be viewed as a private company paying our tuition because of the great lengths DoD goes to to not have to give us benefits, by contracting out the scholarship, and then making us "contractors" by putting everything on a 1099. I'd imagine under this new law, our tuition payments would likely go onto this 1099 rather than our universities reporting it on a 1098-T?
sdflldsfl
 

Re: New tax plan and tuition waiver

Postby kbl2017 » Mon Dec 04, 2017 7:39 pm

I am fairly confident this is considered a scholarship end of story....there's no waiver, the school still reports the income and pays taxes on it themselves. There is still money changing hands, which means taxes are still being paid. Waivers are like discounts, no one ever pays for them, they're not reported as income to the school etc. So a grad student at my school costs lets say $50k a year, the school waives that $50k which means it's never reported as income and is never taxed. Which I think is where the taxes issue is coming into play here.
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