<p>If my school gave me a full ride, and gave me a grant of about 12,000 for room and board, does this mean that this 12,000 is considered taxable income, and will be included in my AGI?
How did everyone else file their taxes? It doesn't make sense that I have to pay ~1,000 in taxes after receiving all this grant money, considering that I am low income to begin with to even be awarded a full ride.
Help!!!</p>
<p>yes as far as I know- grants that are used for room and board are taxable.
However, if your income is that low, there will be so many takeaways that I doubt if you ultimately will be paying very much of it back.</p>
<p>Plus that seems a really high amount, $1000 a month?
you aren't going to school in Beverly Hills are you ?
;)</p>
<p>Yes it is taxable income and has to be reported on your tax return. Any scholarship/grant money (including federal grants such as the Pell) in excess of tuition/fees/required books is taxable. Remember you do have some tax free income before your income is taxable.</p>