Small business question

[Grandphoenix]

I was curious my dad owns a small business which apparently make's to much money for me to qualify for federal financial aid for college...so just curious is he allowed to issue me a scholarship through the company which would then become a tax deduction?

 

[Hexx]

Yes he could, but the problem stands that if he were to get audited, the IRS may decide to not mark it as a deduction because you are family. One of the ways to get out of this is by having your dad issue scholarships out to other people who arent family either, and set conditions for qualifying for that scholarship as well. Or you could just have yourself emancipated >_> Work and claim yourself as a dependant and then you could qualify for financial aid.