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Tax question...(pell grant)

Okay, so I got a 2100.00 pell grant for school. How does this effect the education credit? I'm stressing...this will determine if we owe taxes or not. I'm thinking that I have to deduct the grant form the credit :(

 
Anonymous

Asked by Anonymous at 2:10 PM on Feb. 8, 2011 in Money & Work

This question is closed.
Answers (7)
  • I think it is subtracted OP. We just filled out our taxes (can't turn them in until the 14th though) and part of it was saying how much our tuition expenses were and how much you got in grants and/or scholarships.

    It probably wouldn't affect most people if you still have tuition expenses AFTER the grants and scholarships are taken into account. Which I imagine most people do... You can also subtract book expenses, but you'll probably want to have your receipts handy.

    And you do have to pay taxes on scholarships and grants that go above tuition and text book expenses. Say you get $3000 in Pell Grants and $2000 of it goes to books and tuition. You'd have to pay taxes on the $1000 that you got back unless you can show that you used that money to help pay for school.

    http://www.irs.gov/pub/irs-pdf/p970.pdf
    Erica_Smerica

    Answer by Erica_Smerica at 6:52 PM on Feb. 8, 2011

  • Im not sure what u mean.. But if ur wondering if u have to pay taxes on the money u recieved fr ur grant.. The answer is no. At least Ive never had to pay any taxes fr it.. Hope that was helpful...
    tiamesmer

    Answer by tiamesmer at 2:14 PM on Feb. 8, 2011

  • I've never had to pay for it either
    mommy_jules

    Answer by mommy_jules at 2:15 PM on Feb. 8, 2011

  • We just did our taxes and I got full education credit with the pell grant and two loans. If anything it proves you are in school.
    mslksdh

    Answer by mslksdh at 2:23 PM on Feb. 8, 2011

  • Look at the www.irs.give website to be sure; but I don't believe it affects the education credit.
    Scuba

    Answer by Scuba at 2:29 PM on Feb. 8, 2011

  • Sorry; www.irs.gov.
    Scuba

    Answer by Scuba at 2:29 PM on Feb. 8, 2011

  • I have two girls that use grants to attend college and it never effected our education credit!
    kamore

    Answer by kamore at 4:32 PM on Feb. 8, 2011

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