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Post by T-Bird on Feb 10, 2015 12:12:09 GMT -5
It's probably not taxable. It would most likely be included in the Scholarship reported figure.
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Post by vbnerd on Feb 10, 2015 12:55:58 GMT -5
www.providence.edu/financial-aid/programs-conditions/Pages/taxable-scholarship-notice.aspx"Under current Internal Revenue Service (IRS) regulations, a portion of your grant or scholarship may be considered taxable income, which must be reported on your Federal 1040 tax return. IRS regulations consider any amount or combination of scholarship, grant and NCAA Special Assistance Fund benefits greater than the amount of tuition, fees, and your cost of books and supplies to be taxable income." Interestingly enough, if the National College Player Association gains traction as a union and has the players declared employees, then they would have to pay about 25% of the full value of their scholarship in taxes. For the Northwestern football team that is about $17,000 per year, or 3-4x the COA they are going to get.
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Post by n00b on Feb 10, 2015 13:53:25 GMT -5
www.providence.edu/financial-aid/programs-conditions/Pages/taxable-scholarship-notice.aspx"Under current Internal Revenue Service (IRS) regulations, a portion of your grant or scholarship may be considered taxable income, which must be reported on your Federal 1040 tax return. IRS regulations consider any amount or combination of scholarship, grant and NCAA Special Assistance Fund benefits greater than the amount of tuition, fees, and your cost of books and supplies to be taxable income." Interestingly enough, if the National College Player Association gains traction as a union and has the players declared employees, then they would have to pay about 25% of the full value of their scholarship in taxes. For the Northwestern football team that is about $17,000 per year, or 3-4x the COA they are going to get. So then the question is... If it truly does cost the athlete $6,000 more than the scholarship to attend the school, can the school write a check for an amount the would result in $6,000 after taxes?
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Post by Deleted on Feb 11, 2015 17:33:30 GMT -5
www.providence.edu/financial-aid/programs-conditions/Pages/taxable-scholarship-notice.aspx"Under current Internal Revenue Service (IRS) regulations, a portion of your grant or scholarship may be considered taxable income, which must be reported on your Federal 1040 tax return. IRS regulations consider any amount or combination of scholarship, grant and NCAA Special Assistance Fund benefits greater than the amount of tuition, fees, and your cost of books and supplies to be taxable income." Interestingly enough, if the National College Player Association gains traction as a union and has the players declared employees, then they would have to pay about 25% of the full value of their scholarship in taxes. For the Northwestern football team that is about $17,000 per year, or 3-4x the COA they are going to get. Many schools offer children of staff free or reduced tuition. Does the student receive a 1099 for this? I did not think they did. But, on to your example. NW football. Since paying tuition to attend the school is a necessary business expense in order for them to have their "job" (on the football team), it would not be $17,000 in income tax.
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Post by mikegarrison on Feb 12, 2015 2:32:28 GMT -5
Hmm. When I went to school, undergrad tuition was not generally tax deductible. Apparently that has changed.
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Post by volleyguy on Feb 12, 2015 2:35:23 GMT -5
Every college or university establishes an annual cost of attendance figure (resident, non-resident, on and off-campus). Any grant in aid in excess of that amount for that person's situation would be taxable as income. There is flexibility in that figure depending on how you calculate additional living costs, such as books, airfare home, off-campus housing costs, etc. The main question would be, is it possible to have or justify a different amount for student-athletes. Perhaps or perhaps not, but if those figures were adjusted upwards, the campus isn't obligated to grant aid to the adjusted figure, so it's possible to work around this by raising the amount and granting aid to the student athletes, and not necessarily granting equivalent increases to the general student population (some students could receive additional aid based on the higher figure and their individual eligibility for aid, but that wouldn't necessarily come out of the school's pot of money). I'm pretty sure schools who have committed to this, or are considering it, have had these type of financial discussions internally.
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Post by vbnerd on Feb 12, 2015 9:45:34 GMT -5
www.providence.edu/financial-aid/programs-conditions/Pages/taxable-scholarship-notice.aspx"Under current Internal Revenue Service (IRS) regulations, a portion of your grant or scholarship may be considered taxable income, which must be reported on your Federal 1040 tax return. IRS regulations consider any amount or combination of scholarship, grant and NCAA Special Assistance Fund benefits greater than the amount of tuition, fees, and your cost of books and supplies to be taxable income." Interestingly enough, if the National College Player Association gains traction as a union and has the players declared employees, then they would have to pay about 25% of the full value of their scholarship in taxes. For the Northwestern football team that is about $17,000 per year, or 3-4x the COA they are going to get. Many schools offer children of staff free or reduced tuition. Does the student receive a 1099 for this? I did not think they did. But, on to your example. NW football. Since paying tuition to attend the school is a necessary business expense in order for them to have their "job" (on the football team), it would not be $17,000 in income tax. Yeah cause I made that up myself. Do we really have to cite every article? That came from a lawyer. He could be wrong but there are a lot of undefined variables if they allow the student-athletes to become unionized employees.
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Post by Deleted on Feb 12, 2015 14:56:31 GMT -5
Hmm. When I went to school, undergrad tuition was not generally tax deductible. Apparently that has changed. Undergrad and graduate tuition are NOT generally tax deductible. Unreimbursed business expenses ARE tax deductible. When an expense is NECESSARY for you to perform your job, yet your company does not reimburse you for that expense, you may list that on your itemized deductions. So, if the tuition was necessary for you to perform your job (hard to be on the football team and not attend the school) and it not reimbursed you can deduct it. In this case, the poster was citing it as 1099 Income and I was trying to point out to them (before their sarcastic rude reply) that if it was considered income, it would also likely be considered a DEDUCTION (as a necessary business expense) and two would offset each other (not 100%) significantly.
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Post by mclvbdad on Feb 13, 2015 19:35:12 GMT -5
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Post by vballarfan on Feb 26, 2015 19:53:30 GMT -5
It appears that beyond the power 5 schools, the next 5 conferences that play FBS football arel headed towards paying cost of attendance, at least the schools that want to try to be competitive in football and it appears no one is saying football only presumably due to gender equity compliance. FCS schools or no football schools appear to be considering it for men's basketball and a womens sport of their choosing which most likely will be womens basketball.
Do cost of attendance stipends tip the competitive landscape for FBS schools that do it and allow volleyball to tag along? Does $3000-$5000 per year make that much difference? I think it will be a big impact and become a deciding factor maybe not this year but certainly in years to come as it becomes more clear what schools are actually doing.
What do you all think?
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Post by gh on Jun 30, 2015 17:39:37 GMT -5
COA is taxable.
Room and Board is taxable.
Some schools pay the tax for the student-athlete so that there is no cost to the student but a fed and state tax return need to be filed for these amounts.
Scholarship money for tuition books and academic fees such as lab fees etc are not taxable.
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Post by gh on Jun 30, 2015 17:52:04 GMT -5
College of Charleston is paying $5,119 COA for women's volleyball for 2015-16
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Post by Vballin on Jul 1, 2015 10:20:13 GMT -5
I fear this is just the beginning of a slow decline in Olympic Sports. Kent State was the only school brave enough to mention this according to vbnerd. The mid-majors, who may already have an edge over the smaller D1 conferences will continue to grow if they offer COA. I wonder how this legislation will affect sports in 3-5 yrs. It will be interesting to observe. I don't think it will be the slow decline of olympic sports as much as it will be a slow decline in mid-majors. College sports is going to the have's and have not's even more than it is already. Have to disagree. Sure kids will want to go to schools that give out more money, but the reality is there are only so many spots on a team. All of the mid-majors will still get their rosters filled just fine. Just like almost every kid would like to be good enough to play for a B1G team. Doesn't mean they can and they are happy to play for a mid-major and have a scholarship. Don't really see it changing anything. Time will tell. Or maybe the reverse will happen?? Maybe a few kids who could play for a top 20 school will look at schools like Charleston who is giving out $5100 and go there instead. Could help some mid schools.
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Post by volleymom1532 on Jul 1, 2015 11:46:52 GMT -5
I am the parent of a child who is on a full ride scholarship for volleyball. I am also very against the cost of attendance. No one held a gun to my daughter's head or ours for that matter to "make" her play volleyball. She is playing a sport she loves, has tuition, room and board, and books paid for, gets to register first for classes, has all of the academic tutoring one could ever want or need, has the ability to lead her team, has learned how to manage conflict on a team, has learned time management skills, and I could go on. (I think her scholarship is valued at about $30,000 per year.)
Everyone who is on a scholarship has at least this and more. This is a gift. Yes she works very hard for it, but I can tell you there is no job she could do that would pay her close to $30,000 per year. But in part of that hard work is what is of value.
BTW, she also has over a 3.9 as does many of her friends who are playing volleyball. When it comes time to be get a job or go on to graduate school, these athletes will rise above others.
I do not believe they need extra money. For those kids who do not have extra resources, guess what they don't get to order a pizza now and again, they might not even get to have a cell phone, or a $1,000 tattoo. Oh well. There are a lot of kids who are poor and don't have those things either. They are working two jobs and still can't make enough for their tuition. Life is not always fair. BTW, I see these kids in my college classroom. I would also hire any of those kids in a heartbeat. Anyone who is willing to work hard and forgo for the future.
So what will this do for other children? Raise the amount of tuition at their schools to pay these athletes who already have so much, or men's tennis will get cut, or some other small sport.
I strongly beleive this is not good for overall athletics.
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Post by Vballin on Jul 1, 2015 13:47:24 GMT -5
That is great that some many volleyball kids have parents that are well enough to supply their kids with extra money the year. But there are many football/basketball players who are talented enough to get the full ride but who don't have parents sending them $$ because they are struggling. These athletes can't really be expected to hold down jobs to earn the extra money to get them buy throughout the year. I am sure when they were deciding on giving kids COA money, they weren't thinking about the fortunate volleyball families who can afford to put their kids in private clubs and travel all over the country going to tournaments. You just might want to think about someone other than yourself and your situation. Just saying. By the way, I am also one of those volleyball parents who could afford club and has a top school D1 volleyball player.
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