I filled out my girlfriends taxes. She received financial aid last year and I was under the impression that the money received from financial aid did not fall under the category of income when filing a federal tax return. Can anybody help?
2007-03-01 19:15:57 · 2 answers · asked by Thomas (Ca) 1 in Education & Reference ➔ Financial Aid
no, it is not considered income.
2007-03-01 19:18:45 · answer #1 · answered by annc 3 · 0⤊ 0⤋
NO. That's not considered income. But if you claim education deduction, you have to subtract financial aid money from the total school expense, so you are actually entering how much you actually pay from your pockets . So in the end, although you don't need to claim financial aid as income, it is taken care of in the tax return process, as reducing your deductible.
2007-03-01 19:24:22 · answer #2 · answered by Bruins-fan 1 · 0⤊ 0⤋