Pell Grant is taxable?
Hi I'm grants worth $ 9,000 this year. I was told that overhead costs which will also help the student, such as rent, etc. I only used $ 2,700 to buy a used 1996 Honda Civic. I used approximately $ 3,000 for education expenses like books, calculator, tax etc. I also bought a computer with her, but she returned. Will the $ 2,700 taxable? I have recipts for other expenses as well. Aid
Hi Aditya, the IRS site says the following: Pell Grants, Grants Additional educational opportunities and grants to States for State Education Incentive. These grants are not scholarships taxable to the extent used for tuition and fees for courses during the grant period. You can see http://www.irs.gov/individuals/students/article/0,, id = 96674.00. html So, if $ 2,700 was the Pell grant, it will be taxed. Good luck, Ken
