can u recieve more money from a tax refund if u recived a grant??
2007-03-20 19:31:40 · 5 answers · asked by **PrinCess** 2 in Business & Finance ➔ Taxes ➔ United States
Receiving a grant definitely will not reduce your tax liability.
The tax consequences of a grant depend upon the grant. In some cases grants are taxable to the recipient so you'll have a greater tax liability and get less of a refund. For example if you receive a scholarship grant and use part of it for room and board, that amount is fully taxable to you.
Other grants are non-taxable -- for example a VA grant to a disabled veteran for wheelchair access modifications to their home. These have no tax impact at all.
And other grants are non-taxable but offset deductible items such as some educational grants that must be used to offset any tuition deductions. This effectively increases your tax liability and reduces any refund.
In summary, a grant will never reduce your tax liability or increase any refund and MAY increase your tax liability and reduce any refund.
2007-03-20 23:46:58 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
Actually it may be the opposite - you may end up paying taxes on the funds received.
Grants to individuals for travel, study, or other similar purposes (including loans made for charitable purposes, and program-related investments) are taxable expenditures...
see link below
2007-03-20 22:49:39 · answer #2 · answered by Country Boy 5 · 0⤊ 0⤋
No. I just did someones taxes with this same situation.
2007-03-20 19:35:46 · answer #3 · answered by Jim 2 · 0⤊ 0⤋
No u might end up payin the goverment. but don't worry be happy. lol
2007-03-21 01:32:24 · answer #4 · answered by Mr. Sexy 4 · 0⤊ 1⤋
IDK im only 15
2007-03-21 04:30:25 · answer #5 · answered by Anonymous · 0⤊ 1⤋