Are these sources of income taxable?

Question

1) College scholarship.

2) Reimbursement from an insurance company to cover my out-of-pocket expenses following an injury.

3) Money received from an insurance company as a settlement for an injury claim.

Answer 1

1 - if scholarship is more than the tuition, then yes, if not, then no, it would just be offset against tuition cost on tax return.

2 - Normally, no, but if the reimbursements happens in the following year (out-of-pocket expenses occur in Dec 2006, reimbursement occurs in Jan 2007), and your medical expenses for that year are less than the reimbursement, then you would have taxable income.

3 - depends on what the settlement is for, ie, lost wages, medical bills, pain and suffering, etc.

Answer 2

in view which you itemized 2005 taxes, basically your state tax refund would be seen taxable in the 2006. undergo in ideas you deducted state income taxes in 2005 as area of the itemized deduction and that they gave money back to boot. So there's a small mis tournament and irs is remaining that hollow by employing making you to pay taxes on your state tax refund.

Answer 3

Scholarship - not if used to cover tuition and fees.

Reimbursement for out of pocket expenses - no.

Settlement - maybe, would need more info on exactly what it was for.

Answer 4

I don't think nay of them are taxable income. go to www.irs.gov and check out publications there - in pdf format - to make sure

Answer 5

I am not a lawyer but in my life experience none are taxable.

Answer 6

Generally no, but there are always exceptions.