Do I need to pay taxes?

Its a 1098T, and yes you need to pay taxes. If the 4000$ is given throughout the year in small disbursements, you need to pay Federal and state “estimated taxes” quarterly. If you get it all at once, you need to pay estimated taxes on it by the filing date for that quarter. If you just file it at the end of tax season, you will owe taxes then and have to pay a penalty for not paying the estimated taxes as they expected you to (I messed this up once and it was like $20?)

Also, scholarships are on 1098Ts too and anything other than what was used on tuition, like personal expenses, is usually taxable. But your fine details arent posted, so consult your tax professional!

/r/personalfinance Thread