2007-12-27 16:44:09 · 3 answers · asked by Holden's Momma 2 in Business & Finance ➔ Taxes ➔ United States
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!
2007-12-29 23:50:44 · answer #1 · answered by Katie Short, Atheati Princess 6 · 1⤊ 0⤋
Loans do not count selection as earnings once you acquire the loans. in case you not in any respect pay off the loan, and it quite is at last canceled or forgiven, then the canceled or forgiven loan does count selection as earnings, while it quite is canceled or forgiven. If the Pell furnish is spent on instructions, and different required fees paid to the school, then it would not count selection as earnings. If the Pell furnish is spent on non-academic issues, at the same time with clothing, or you save the Pell furnish money somewhat of spending it, then it counts as earnings.
2016-12-11 14:33:37 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Loans are not. Grants can be if used for something other than tuition and fees, for example if used for living expenses, like room and board.
2007-12-27 16:48:19 · answer #3 · answered by Judy 7 · 3⤊ 0⤋