Question About Work-Study (Financial Aid)

Going to college this fall and did all the FAFSA stuff. I got work study but have a few quick questions about it. How does it work?

1. I get all the money and the money I earn from the job I get will pay it off.
   
2. I get all the money and just have to work but the money I earn from the job is separate from the the work study money I get to use it.
   
3. Money I earn from the work study job is the money I use for tuition.

Jam it back in, in the dark.

Another question I have is: The Financial Aid money you get (and any leftover...grants and scholarships); do you have to file it as money to got when paying taxes?

How ya doing, buddy?