Worked for Law Firm, their scholarship was taxed?

Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
socalguy

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Worked for Law Firm, their scholarship was taxed?

Postby socalguy » Sat Sep 15, 2018 8:17 am

Hi all,

I worked for a law firm last summer and received a diversity scholarship from them.

The scholarship was for XXXXX amount, but the amount I received was about 50-65% of that.
Anyone else have experience with receiving a scholarship from a law firm after working there (to return)?

Cheers

dabigchina

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Joined: Mon Jan 13, 2014 2:22 am

Re: Worked for Law Firm, their scholarship was taxed?

Postby dabigchina » Sat Sep 15, 2018 8:28 am

That sounds about right.

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nealric

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Joined: Fri Sep 25, 2009 9:53 am

Re: Worked for Law Firm, their scholarship was taxed?

Postby nealric » Mon Sep 17, 2018 9:15 am

As a general matter, payments received in exchange for labor are taxable, even if they are notionally payments for school. This is different from a scholarship granted gratuitously from a school or charitable enterprise.

Keep in mind that when amounts are withheld, such withholding will not necessarily equal your actual tax liability.



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