Do you have to report school refund to the irs?

Paying for College
1

<p>I may or may not get 5000$ from my school as a refund.Would i have to report it for the taxes? If i get it its only because i paid the tution before getting the financial aid .</p>

2

<p>That isn’t income. So no, that refund is not reported.</p>

<p>If your scholarship is bigger than your “qualified expenses” (tuition, fees, textbooks, and materials specifically required for your courses) then you need to look at how your scholarship is defined, and you may owe taxes on the amount that is left over after qualified expenses. For ideas on that, see: <a href=“http://talk.collegeconfidential.com/financial-aid-scholarships/1280595-1098-t-aoc-tax-credit-questions.html[/url]”>http://talk.collegeconfidential.com/financial-aid-scholarships/1280595-1098-t-aoc-tax-credit-questions.html&lt;/a&gt;&lt;/p&gt;

3

<p>So if i got the money because i paid for the tution before getting the aid then i dont have to report it right?</p>

4

<p>It is a refund, not income. You don’t report this any more than you would report the money you got back from returning clothing that you found out didn’t fit after you got home.</p>

5

<p>I’ll disagree with happymom and say maybe, but it’s not based on the refund being considered income. Disregarding what you paid for the moment, if the grant/scholarship aid that you are awarded exceeds your qualified educational expenses (tuition, course fees, and required books/supplies) then you will have reportable income. For tax purposes, it doesn’t matter if you’re being reimbursed or if the school applied the charges to an outstanding balance. The only tax implication would be in the timing of the payments/charges which could affect when you report the income/deductions. See the discussions on this board regarding 1098-T’s for more info.</p>