New Tax Law May Bring Higher Taxes to Some Higher Ed Students
The 2017 "Tax Cuts and Jobs Act," passed by a Republican-controlled Congress more than a year ago, might result in higher taxes for higher education students with scholarships. Andrew Kreighbaum of Inside Higher Education reports that "Scholarships or grants for nontuition expenses like room and board have traditionally been subject to the same marginal tax rate paid by parents. So low-income students could expect to pay low taxes. But the Tax Cuts and Jobs Act applies the same high marginal tax rates for those scholarships as it does for trusts and estates." Inside Higher Education reports that Congress is working quickly to address and "fix the issue."