Scholarship refund taxed?
I received a $10,000 scholarship from a third party that was sent directly to my university. Because I already have full ride, the money wasn't applied to my tuition and my school sent me the $10,000. I cannot uphold the conditions to the third party scholarship anymore so I returned the $10,000 back to the third party. When I receive my T-1098 later this year, it will state my school refunded me $10,000 which is technically income. However, I returned the money and therefore did not make any income off of it so will I need to pay taxes on it?
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