Fee waivers and taxes

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delusional
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Fee waivers and taxes

Postby delusional » Sun Jan 30, 2011 5:24 pm

Kind of an odd question, but do you have to report fee waivers that you utilize as some kind of benefit/income on your tax forms? Why or why not?

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cinephile
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Re: Fee waivers and taxes

Postby cinephile » Sun Jan 30, 2011 5:39 pm

I wouldn't think so.

delusional
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Joined: Thu Jul 15, 2010 7:57 pm

Re: Fee waivers and taxes

Postby delusional » Sun Jan 30, 2011 5:55 pm

cinephile wrote:I wouldn't think so.

I wouldn't either, but why not?

andythefir
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Re: Fee waivers and taxes

Postby andythefir » Sun Jan 30, 2011 6:11 pm

It's not income. You don't report the money you would have paid by buying something on sale, either.

delusional
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Re: Fee waivers and taxes

Postby delusional » Sun Jan 30, 2011 6:25 pm

andythefir wrote:It's not income. You don't report the money you would have paid by buying something on sale, either.

But don't you report prizes you have won?

mala2
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Re: Fee waivers and taxes

Postby mala2 » Sun Jan 30, 2011 6:42 pm

No. You do have to report things like loan forgiveness because it's considered income. You only have to report prizes/lotto/ect above a certain amount, I believe it's $2,000, but I'm not positive. It is a form of need based financial aid. You wouldn't report your food stamps for example as taxable income. Also I don't know how you'd get more than $1000 of value out of the waiver.

delusional
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Re: Fee waivers and taxes

Postby delusional » Sun Jan 30, 2011 6:49 pm

mala2 wrote:No. You do have to report things like loan forgiveness because it's considered income. You only have to report prizes/lotto/ect above a certain amount, I believe it's $2,000, but I'm not positive. It is a form of need based financial aid. You wouldn't report your food stamps for example as taxable income. Also I don't know how you'd get more than $1000 of value out of the waiver.

If I'm not mistaken, a series of small awards would need to be reported if they total whatever the minimum threshold is. So even if you would not include one or two, if use 12-14 of them, they might reach 1000 dollars.

Also, food stamps are not analogous because they are expressly for low income families.

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niederbomb
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Re: Fee waivers and taxes

Postby niederbomb » Mon Jan 31, 2011 12:00 am

It's not an award or prize it's a waiver. The school is giving you something free in the hopes that you will bite and then (hopefully) buy a lot more ($150,000+).

If the local grocery store gives you a sausage sample, you don't have to report the amount for taxes.




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