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Worked for Law Firm, their scholarship was taxed?

Posted: Sat Sep 15, 2018 8:17 am
by socalguy
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

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

Posted: Sat Sep 15, 2018 8:28 am
by dabigchina
That sounds about right.

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

Posted: Mon Sep 17, 2018 9:15 am
by nealric
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.