How do I report taxable income from financial aid?

Taxable income of financial aid and loans?

  • My total adding together my loan and financial aid (grants) the total is 15,408.50 my qualified tuition is 4,862.50 so do I have to report 10,546.00 as my income?

  • Answer:

    Loans are not considered income. Generally, you will only have to report as income any amount of grants or scholarships in excess of qualified educational expenses. Edit to add: Don't worry about the loan at all. Take the total amount you received in grants and scholarships and subtract out any qualified education expenses. The remaining amount (from grants and scholarships alone) is likely taxable income.

autumn97... at Yahoo! Answers Visit the source

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