Do you know if student loans or grants are considered income when you file your taxes?
Loans are not. Loans are actually considered the same as money you paid out-of-pocket for Income Tax purposes.
Grants can be taxable, or not, depending on their use. If they are for tuition and fees only, they are definitely not taxable. If they are used for other expenses, they may be taxable.
Keep in mind that grants do not count as “Earned Income” for the purposes of the Earned Income Credit or the Child Tax Credit – or anything else for that matter. I had a student who was planning to use his grants (his only income) to file a return and get money back since he has children who live with him. Alas, he will get no refund based on this.
Good luck!
