A. You can use your funds to pay for expenses not covered by the scholarship, such as room and board, books and other required supplies. If you withdraw funds and do not use them for qualified expenses, the earnings portion of your withdrawal may be taxed at the scholarship recipient’s tax rate, but will not be subject to the 10% additional federal tax penalty.
A. You can use your funds to pay for expenses not covered by the scholarship, such as room and board, books and other required supplies. If you withdraw funds and do not use them for qualified expenses, the earnings portion of your withdrawal may be taxed at the scholarship recipient’s tax rate, but will not be subject to the 10% additional federal tax penalty.