Best Certified Public Accountants in Fairfield, CT

With the rising cost of college, many families are in search of scholarships. If your child receives one, you may wonder how it affects your taxes. Good news: Scholarships are generally tax-free for students in elementary, middle and high schools, as well as those attending college, graduate school or an accredited vocational school. It doesn’t matter if the scholarship makes a direct payment to the individual or reduces tuition. However, certain conditions must be met. A scholarship is tax-free if it’s used to pay for tuition and fees required to attend the school, and fees, books, supplies and equipment required of students. Room and board, travel, research and clerical help don’t qualify.