Today TaxMama hears from Don in Idaho, who asks, “Is financial aid from a community college taxable?”
Well, there are all kinds of financial aid. So it depends on what you’ve gotten.
If it’s a loan or a grant that you must repay – nope. Not taxable. After all, you have to pay it back.
If it’s a scholarship or a grant that you don’t have to repay – then as long as the aid only covers tuition and books, it’s not taxable. If it covers living expenses, it’s probably taxable.
If it’s simply tuition reduction – then it’s not taxable either.
You can look things up here, in IRS Publication 970 Tax Benefits for Education.
And I hope you get all you need!
And remember, you’ll find answers to lots of answers to questions about education benefits and other tax information, free. Where? At TaxMama.com[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips, too. Please click on the subscribe link and join us.]
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- IRS Publication 970 :: Tax Benefits for Education.