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Are UFA Funds Taxable?

Explains whether UFA scholarship funds are taxable and how sales tax reimbursement works.

No, UFA funds do not count as state taxable income for parents of scholarship students. Reference §53F-6-402(8).

Can I be reimbursed for sales tax?

Yes, sales tax works on an all-or-nothing basis:

  • If you submit a full receipt for reimbursement, you can include the taxes.

  • If you request reimbursement for individual line items from a receipt, you cannot split the taxes.

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