Hi again
I got a PELL grant and spent around $2100 of it in getting a used car. Do i have to declare it as income on my 2007 return because the reason i bought it was to commute to the school i am transferring to.
If i do declare it, instead of getting a refund of $19 i will have to pay the IRS $300
what do you recommend?
2007-12-31 09:41:20 · 2 answers · asked by Aditya G 1 in Business & Finance ➔ Taxes ➔ United States
Do it right from the beginning, don't play around and think you won't get caught.
And if you end up owing IRS and request an installment agreement IRS charges $105.00 for a USER FEE, I would recommend you either full paying the amount or ask for an extension to pay and promise a date you will full pay the $300.00 plus interest and penalties. If you go with the installment agreement you have to pay the $105.00 at the beginning and offer at least $25.00 per month, and interest and penalties continue to accrue.
2007-12-31 09:50:00 · answer #1 · answered by Ms. Angel.. 7 · 0⤊ 0⤋
Since the grant was spent on something other than tuition and fees, yes that part of it is taxable income to you.
2007-12-31 17:47:03 · answer #2 · answered by Judy 7 · 2⤊ 0⤋