Pacun Posted March 12, 2017 Report Share Posted March 12, 2017 Year up sent a letter to my client stating... "during 2016 you received educational reimbursements from Yearup. This stipend income is not for services performed but is a scholarship and it is taxable". The amount is about 5k and it is correctly reported on line 7 with a SCH label. When I interview this millennium, he didn't why they gave it to him... so I am wondering if he might qualify for any educational credits. He didn't attend any university so I told him he was going to pay taxes on it and that was it. I have the return ready to be efiled but I just want to check if I missed something since I have never dealt with Yearup. Quote Link to comment Share on other sites More sharing options...
RitaB Posted March 12, 2017 Report Share Posted March 12, 2017 He didn't know why they gave the letter to him? I don't know why they gave the money to him. But if they want to give me $5,000... I don't know who Year Up is but Year Up appears to know what you know. That this is taxable income. Here's a link to Publication 970. I would probably print the applicable part for the client. I don't know why everybody thinks everything is free. Well, yes, actually I do... If they are reimbursing education expenses he had in past years, I would guess somebody has taken tax credits or tuition deduction if they qualified. https://www.irs.gov/publications/p970/ch01.html#en_US_2016_publink1000178003 Quote Link to comment Share on other sites More sharing options...
JohnH Posted March 12, 2017 Report Share Posted March 12, 2017 I did a quick check, and a cursory look indicates it works similar to Pell Grants. It's probably taxable income unless he can produce documentation to the contrary. Quote Link to comment Share on other sites More sharing options...
Lee B Posted March 12, 2017 Report Share Posted March 12, 2017 Year Up is a 1 year program ( Modern version of Job Corp ) that provides disadvantaged youth with 6 months of classroom training followed by a 6 months internship with a local business with the possibility of being hired as a regular employee at the end of the 12 months. They receive a monthly stipend of $600 to $ 1,000 plus various incidental expenses like transit fees etc. So it's probably all taxable. 3 Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted March 12, 2017 Report Share Posted March 12, 2017 After cbslee's explanation, I will agree he is right and the total is taxable. As an evaluator for a National organization, I have evaluated a few job corps for a National Accrediation for their automotive programs. Students do receive this type of support so again, it is all taxable. Maybe if you pick his brains a bit about his past maybe he'll remember. 1 Quote Link to comment Share on other sites More sharing options...
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