I got a pell grant. The school paid my books and tuition expenses. Then I got a check from my school from the amount I didnt use. I bought a computer for school. Do I have to report my pell grant to the IRS? I called the IRS and they said pell grants are tax exempt. but I am still scared. Can someone tell me if the the IRS is right? I did get a 1098 form from the school. I also told the IRS this and was told it was income.