Scholarship Payout
Votes
Open
I'm very grateful that I won a scholarship, but I have a question on whether or not I can use the scholarship to pay out to my flight school.  I was awarded the scholarship by WTS a transportation chapter, and they will pay the scholarship to me.  However, they sent me a large link of rules about what I can spend the scholarship on in order to not get in trouble when I file my taxes with the IRS.  They make it very clear the funds cannot be spent on travel, which is how my flight charges usually appear on my credit cards.  But they do say that you can use it on expenses that include receiving your degree, and my degree actually requires that I get my CFII license in order to graduate.  

So I'm wondering if anyone else has been in a similar situation in regards to scholarships and the IRS.  Or if you know of a tax place that I can ask these types of questions.

Link sent from the chapter about the IRS and scholarships: https://www.irs.gov/publications/p970#en_US_2019_publink1000178691
2 Replies
Votes
Thank you so much for that info!
Votes
1155 Posts
If you are an AOPA Legal Services Plan member, you should be able to obtain legal advice from a LSP attorney.  In addition, you can find local tax accountants in the Yellow Pages.