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re: TJ Moe speaks obvious truth about CFB unionizing
Posted on 3/29/14 at 8:49 am to Gravitiger
Posted on 3/29/14 at 8:49 am to Gravitiger
Scholarships are non-taxed IIRC up to the limit of what is required to cover tuition and whatnot. Anything over that which most scholarships cover is taxable but the amount is usually insignificant. They will receive a 1099 and it will be reported as well to the IRS.
As an employee it all would taxable. The scholarship would no longer qualify as a deduction and hence the player would become a contract employee once they join the union and any compensation would be taxable not to mention they would also pay union dues as well.
As an employee it all would taxable. The scholarship would no longer qualify as a deduction and hence the player would become a contract employee once they join the union and any compensation would be taxable not to mention they would also pay union dues as well.
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Posted on 3/29/14 at 9:28 am to TideWarrior
quote:Why would making them "employees" make the scholarship income taxable all of a sudden? It's already "income"; it's just exempt. Making them "employees" wouldn't change that provision of the Code. It may even be deductible as a business expense (not all, but large majority). I could be wrong, but I don't think this changes much in terms of federal income tax.
As an employee it all would taxable. The scholarship would no longer qualify as a deduction and hence the player would become a contract employee once they join the union and any compensation would be taxable not to mention they would also pay union dues as well.
This post was edited on 3/29/14 at 9:36 am
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