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