<p>Hey all. I'm currently a college freshman and I'm going about tackling the CSS Profile, the FAFSA, and my income tax return. I and my parents have no out-of-pocket expenses for college. I'm signed up for some loans but I haven't been making payments on them yet. I'm assuming that I'm not eligible for all those educational credits listed on the online tax return (Hope, etc.). I'm also curious about reporting grants (I've got about 24K for this semester) and I'm wondering how this will affect my return. How exactly can you report grants since it covers so many things (apparently if it goes towards room and board it isn't tax free; but who knows if grants or loans covered it?).</p>
<p>bump? aslkdjflksjdfl</p>
<p>Your grants should be reported on a 1098 from teh college, it will show total monies to you and total non-taxed $$ spent (like fees & tuition) I do not know if you can deduct books or anything on your tax return.</p>
<p>Thanks! So then I'm waiting to file until I get the form from the college.</p>
<p>The school will send you a 1098T with the total of qualified tuition and fees paid on your behalf in 2004, and how much of that was in grants. If the amount of tuition is higher, you can take the difference for the credits. If the amount in grants is higher, the difference between the two would be taxable. Any money take out by you inloans and used for qualified tuition is considered as paid by you and thus eligible for the tuition credits. You cannot take the cost of books, room and board or non required fees for the credits.</p>
<p>Thanks for all the help! I'm glad I held off on filing my taxes.</p>
<p>Hello, can i ask you to clarify some of this for me. I'm still a little fuzzy.</p>
<p>Are my loans considered taxable income? They aren't technically income right?</p>
<p>loans are not taxable income. If you don't get answers here, try emailing the profile people. They responded to my question within 24 hours.</p>
<p>Loan proceeds aren't income. You have to pay 'em back.</p>