Is this pell grant taxable?

[Contrariety]

DH got $6140.00 in pell grants last year, his tuition was $6120. I cannot figure out if the grants are taxable or not. They were used only for tuition and books, so i dont think they are, but how can i be sure? if they are not taxable, it increases our refund by$3000, so i want to be sure i'm doing it right, since i don't want to miss out on that $3000, but i also don't want to have to end up paying it back if we make a mistake.

ugh. why do taxes have to be so confusing?

any help?

[Drummer's Wife]

I entered the info from the 1098 (is that the form?) and the tax software figured it out. In my case, it did up our income, but only by like $100 something for the year, even though I got a lot more fin aid than that.

sorry, that's probably not much help. but I don't think it's going to mean an added 3k of taxable income. Hope someone else can answer your question better.

[leavemealone]

From the IRS website: Pell Grants, Supplemental Educational Opportunity Grants, and Grants to States for State Student Incentives. These grants are nontaxable scholarships to the extent used for tuition and course-related expenses during the grant period.

http://www.irs.gov/individuals/stude...6674%2C00.html

If you use a tax program to prepare your taxes, I would think that it would walk you through whether it's taxable or not.

[1babysmom]

Did you get a check for the excess $40? If so, what we do is just add that into our income (unless it went towards other school costs, but usually by that point they don't for us).

[Dar]

Not taxable, as long as it was all spent on tuition and books (or other required expenses like lab fees or supplies, etc.).