Do I have to claim financial aid on my taxes? When all of the aid isn't used I get a rebate check, and it's not only for the loans but the grants, too. Do I have to put cd's on my taxes? I have a $3000 one now for when I am doing an internship and won't be making any money. If I don't put these things on my taxes, what are the chances of getting caught?
2007-05-05 10:04:20 · 1 answers · asked by Momin2005 1 in Business & Finance ➔ Taxes ➔ United States
Some financial aid is taxable, some isn't. If you got a W-2 or 1099 for it, you have to report it.
For the CD, interest earned on it is taxable. You should get a 1099-INT from the financial institution holding the CD showing the amount. You report only the interest, not the principal invested in the CD.
Since these items are reported to the IRS, chances of getting caught are approximately 100% if you don't report them and should have.
2007-05-05 12:05:15 · answer #1 · answered by Judy 7 · 0⤊ 0⤋