The mom is a bus driver - made about $8,800 and is trying to claim $2,500 as wages from a Pell Grant. She is required to show her ex-husband her income so that she will be able to claim a child on Income taxes to IRS. She has to make at least $10,300.00 to be able to claim 1 child. Can she legally do this?
2007-02-12 07:09:50 · 3 answers · asked by dnd.wilkerson 1 in Education & Reference ➔ Financial Aid
The CORRECT answer is -
Pell is only considered income IF the student is otherwise receiving a FULL COST Scholarship (think student athletes in major programs) and the Pell grant when combined with the scholarship exceeds the cost of attendence - very rare.
Otherwise, no, it is an entitlement, not income.
2007-02-13 00:33:57 · answer #1 · answered by Anonymous · 0⤊ 0⤋
there is not any way that you'll convince the IRS that you paid 0.5 the cost of protecting a house for you and your newborn on a measly $2,500 in line with 3 hundred and sixty 5 days. In 1952 perhaps, yet no longer in 2011. If the in trouble-free terms monetary help that you gained grow to be a Pell provide -- no loans or practise and prices paid out of pocket from different money -- and also you gained a $2,500 refund of the unused Pell provide then it is taxable earnings to you. that is not any longer earned earnings for any refundable credit and if it grow to be your in trouble-free terms earnings for the three hundred and sixty 5 days that is not any longer sufficient to set off any tax legal duty, so that you want do no longer some thing in any respect.
2016-12-04 02:23:20 · answer #2 · answered by Anonymous · 0⤊ 0⤋
When I was in college and received Pell Grants it was NOT considered earned income, but this might have changed.
2007-02-12 07:13:12 · answer #3 · answered by Cris O 5 · 1⤊ 1⤋