U.S. Citizens & Permanent Residents Receiving Swarthmore Scholarship

Taxable Scholarship and Filing Your Taxes

Swarthmore College will pay any tax burden caused by Swarthmore Scholarship.  To determine whether you are eligible for this tax help, follow the steps below.  The Financial Aid Office will assist you in filling a 2014 federal tax return only if it is determined you have taxable Swarthmore Scholarship.  If you do not have taxable Swarthmore Scholarship, you must seek guidance from your family, a qualified tax professional. or the IRS.  Detailed instructions can be found at http://www.irs.gov/pub/irs-pdf/i1040ez.pdf .

Step 1: Determine if you have Taxable Scholarship

Use this Excel worksheet to determine the amount of your taxable scholarship income (if any) for the 2014 tax year.

You will need:

    • W-2 Income Statement(s) and or 1099 Interest Statements: Your employer(s) must send you a statement of 2014 wages earned and taxes withheld (Form W-2 or Form 1099). Contact your employer if you do not receive your 2014 W-2 by early February. If you lose your W-2, ask your employer for a new one.
    • 1099-INT: You will receive a 1099-INT from your bank if you earned sufficient reportable interest on an interest bearing checking or savings account.
    • Swarthmore Financial Aid Award Letters, outside scholarship award notices, and any 2014 service, enrichment, or summer stipend grant amounts for academic year 13-14 and 14-15: The tax year straddles two academic years. You must include scholarship amounts received spring '14 (13-14 academic year) & fall '14 (14-15 academic year).
    • Lang, Evans, Mellon or Swarthmore Foundation grant letters: If awarded a 2014 service, enrichment, or summer stipend grant not reflected on a W-2 Statement, record the amount you received (spring '14 term, summer of 2014 & fall '14 term). 

In the worksheet above:

If subtotal 3 is a positive number: You may have taxable scholarship.Swarthmore will pay for any federal tax burden caused by your need-based, not-for-service scholarship (subtotal 3). Make an appointment here:Make a tax desk appointment

    • Please save your Excel Taxable Scholarship Worksheet and bring it to your tax appointment.
    • Skip to Step 2 below to complete a 2014 federal tax return and bring this to your tax appointment.

If subtotal 3 is not a positive number you do not have taxable scholarship and will want to file your 1040-EZ form using the information from your W-2s and other income sources.  Detailed instructions can be found at http://www.irs.gov/pub/irs-pdf/i1040ez.pdf .

Step 2: Complete 2 separate tax returns prior to your Tax Desk Appointment

Prior to your tax desk appointment you will need to complete 2 separate tax return forms.  Visit the IRS Website to open PDF versions of the 1040 EZ tax return. From our step-by-step instructions below, you will see that 2 different calculations are needed. First, use the amounts determined on your Taxable Scholarship Worksheet to complete a tax return. Then, complete a second federal "dummy" tax return omitting your taxable scholarship and instead using only the amounts found in Box 2 of your W2(s). Use the 2014 Tax Table to determine the amount of tax owed.

Use our Step by Step Instructions [pdf] and our example 2014 Federal Income Tax Return [pdf].