Is everyone certain that Grad Students that teach

Posted on: November 30, 2017 at 12:40:22 CT

currently don't have to count the lower tuition as taxable income? Schwab says differently:

https://www.schwab.com/resource-center/insights/content/paying-for-college-are-scholarships-taxable

".......Scholarships considered taxable income:

Now let’s say your daughter is a grad student with a fellowship that requires her to be a teaching assistant. In this case, the tax rules are different. That's because scholarship or fellowship money that represents compensation is taxable—regardless of how the money is used. So even if a $20,000 teaching assistant fellowship went primarily to pay for tuition and books, that $20,000 would still be considered taxable income. The student would receive a W-2 from the school and would have to file a tax return...."