<p>Is financial aid - Pell Grants, State University Grants, and merit scholarships - considered taxable income for a student?</p>
<p>Anything that covers tuition is not taxed. Room and board can be taxed, but it might depend on income.</p>
<p>You might post this in the financial aid pages and get a better response.</p>
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<p>Room and board are taxed, regardless of income. The student must claim it as earned income on their taxes. It is taken out when filling out FA forms for the following school year so it doesn’t look like you had cash access to that money. D has had to file approx $15,000/yr. on grant money. I believe you put your “actual” work income down, and then put the scholarship/grant money off to the right of that amount as “sch, $xxx.”</p>