<p>My student has never received any tax forms (w-2, 1099s etc)from any of the colleges has attended. My income is small, and I receive max EIC with him as dependant. Student receives State merit tuition scholarship, pell grant, subz loans and this year a school need scholarship. Student pays for apt. and expenses etc from this. I provide his healthcare, auto ins, some food and what ever else I can help with, without putting myself into forclosure.
I am just flabagasted, someone told me that his FA is taxable! What logic is there in giving them money to help them go to school and then taxing that money?
Very confused now!</p>
<p>The grants and scholarships in excess of qualified education expenses (mainly tuition and fees) is taxable income. Any grants/scholarships used to pay qualified expenses is not. So scholarship/grant (not loan) money used to pay for room and board is taxable income but if used for tuition is not. And then he has to have enough income (including the taxable portion of grants/scholarships) to be required to file.</p>
<p>His colleges should have been sending him a 1098 every year.</p>
<p>Yes, he should be getting a 1098 form every year. You would also need that form in order to take the Hope/Lifetime tax credits or any other college-related tax deductions.</p>
<p>unfortunately since am became disabled, my only taxable income a disability pension, my taxable income is too low to take any tax deductions. But if I am understanding correctly, my student should have been filing taxes on his grants and scholarships.
My student is a junior transfer student, and had attend two colleges and never received income tax forms 
Stressing as I don’t know if I should have been putting him as dependent or it would have been better for him to claim himself. And now he has two years in which he did not file that we did not know about. Sorry…get very stressed when irs is involved!</p>
<p>If his income (including the grants/scholarships) was less than the required filing amounts for those years for a single dependent who can be claimed on someone elses tax return then he wouldn’t owe anything anyway. My daughter has had to pay some taxes on her grants/scholarships, but it has not been too bad.</p>
<p>If all the qualified education expenses are being paid with scholarships and grants then you would not have been eligible for the other tax deductions in previous years anyway.</p>