<p>I was filling out the FAFSA, and I saw a new question that wasnt there last year when I filed for the first time.
It says to select the box that applies : Grant and scholarship aid reported to the IRS
am I supposed to report my loans and grants such as the pell grant and cal grant?
do I have to do taxes?</p>
<p>Im stuck in this part of the FAFSA</p>
<p>-I would appreciate any info.</p>
<p>This question has been on fafsa before. You only put in an amount if any of your scholarships/grants are taxable, that is only the amount of scholarships/grants that exceed qualified education expenses. Here’s a recent thread on the same subject that explains all about taxable scholarships/grants. Loans aren’t free money so they aren’t taxable.</p>
<p><a href=“http://talk.collegeconfidential.com/financial-aid-scholarships/1442996-reporting-financial-aid-fafsa.html[/url]”>http://talk.collegeconfidential.com/financial-aid-scholarships/1442996-reporting-financial-aid-fafsa.html</a></p>
<p>Yes, the question has been on FAFSA for many years. </p>
<p>If your income, including taxable scholarships, grants, and work study (but NOT loans), is high enough to require you to file a tax return, then those items will be part of the AGI (adjusted gross income) on your tax return that must be reported on FAFSA. The questions about taxable scholarships/WS included in your AGI are used to deduct that amount from your AGI so they scholarships/grants/WS do not impact your EFC. </p>
<p>For instance if you had $5,000 income from a regular job, $3500 WS income, and $6,000 taxable scholarship/grant income, your income would be high enough to require you to file a tax return and pay some taxes. The AGI from those items would be $14,500 which would have to be reported on FAFSA. You would then report the taxable scholarships and the WS in the relevant FAFSA questions. The $6,000 and $3500 would be deducted from your AGI in the EFC formula leaving only $5,000 of income. As a dependent student has around $6,000 protected income allowance, the $5,000 would not impact the EFC.</p>
<p>For FAFSA I did my own calculation and my grants and merit scholarships cover tuition and fees with maybe $100 over. I have books receipts in excess of $100. So I have no taxable grants or scholarships right? What is the 1098T and when can I expect to get it. It is not on my FA web page yet. Is that what I will use when I file my taxes?</p>
<p>soccerdude, with the numbers you have stated, none of your scholarships/grants are taxable. The 1098T is a tax form that will show either how much you paid or how much the school billed you for tuition and fees in 2012, one or the other, schools have a choice which they report. It will also show all your scholarships/grants credited in 2012. If the scholarships/grants are more than tuition/fees, the school is not required to give you a 1098T and you may not get one. I was surprised last year when my son didn’t get one. The 1098T is primarily to make parents/students aware of the amounts they may be able to use in claiming the AOC or other tax benefits.</p>
<p>Thanks Dad!</p>