Quote:
Originally Posted by Bweb
Something to think about that I heard on Mike and Mike this morning.....
Currently, athletic scholarships are considered grants in aid, which are not taxable.
If student/athletes are to be considered employees of the schools (with the main reason to be considered employees is that their scholarships are considered compensation)...would their scholarships then be considered taxable income?  |
And here's another wrinkle...
Most (if not all) grants are done directly to the institution. The student never gets a "check", and in the case of institutional scholarships, money never actually changes hands at all.
If they become employees and get a paycheck, not only will that be taxable, but that income will be issued TO THE STUDENT. At that point, like any work-study job, it becomes the student's money to do with as the please.
What happens when 30+ athletes at a school suddenly default on their tuition payments because they decided to spend that money on something else?