Taxes for College Students

Scholarship Gifts are not taxable income – Some special cases

20 January 2021

Scholarship Gifts made to Dormoney Students are generally considered to be "personal gifts" which, for the most part, are not taxed as income in the United States. Additionally, these Gifts are not tax deductible for donors.

However, there may be particular case-specific instances where the income is in fact taxable for Students.

The best way to ensure that you are in compliance with the tax laws is to maintain adequate records of Scholarship Gifts received and consult with a tax professional. As part of Dormoney’s Terms and Conditions, you have represented that you are not providing any goods or services in exchange for the Scholarship funds. As a result, Dormoney will not provide you with any tax documentation for money donated for your Scholarship, nor will Dormoney report the funds you collected as earned income.

If you receive more than $15,000 in cash or donations in a
year you need to file a gift tax return. That doesn’t mean you
have to pay a gift tax. It just means you need to file IRS Form 709 to disclose the gift.