I’ve been doing some research and it says that any money that’s not spent on qualified expenses is taxable income. I am dependent and my total earnings are over 6500 so I have to file. I want to know 3 things:
Do I report the aid I got in 2017 only or the aid for the 2017-2018 year?
I include it on the line with the money I got from my W-2 from my part-time job right? (doing a 1040EZ)
Is what I said above correct? I only file taxes as a dependent if my total earnings are over 6500 (which can include taxable financial aid?)
Use a tax program like turbotax or TaxAct. They will be free for you.
You enter the w2 income in one section and the education expenses in another. You only enter 2017 amounts earned or educ expenses. Do not include any loans. You will need the parent who takes you as a dependent’s tax information to complete your taxes.
It will spit out a 1040A or a 1040. You can’t use the 1040EZ if you have taxable scholarships.
Depending on the amount of unearned income (including, in this case, taxable scholarships), there may be kiddie tax owed as well. That’s another good reason to use a reputable tax program and have access to the parent’s 2017 tax return.
Thank you so much. The grant works so that I get half one semester and the other the next. I don’t include the money I got for this year (my spring semester I am currently in) then? I got it in January. It’d be what I got last Spring semester and fall semester?
It’s really not hard. Take your tuition statement from the school, tuition, fees and add any books you paid for or required supplied for the class (lab apron, goggles, art supplies, etc). Add all the grants and scholarships (not loans) and subtract the tuition number. This is the amount you report on your taxes as income.
Yes, you do. It’s just like income you were paid and didn’t spend - still income when you receive it.
Did you really have all your tuition, fees, books covered by other grants and scholarships, and just received the Pell as cash to you? I just don’t want you to pay taxes on funds you don’t have to. Make sure none of it was loans. Don’t pay taxes on loans.
I never heard of paying taxes on a Pell grant. The mere fact you have been declared eligible for one shows you the student are low income. Do you have more than $10,400 in income?
Okay, then as I said above, take the billing statement for the fall and add up all the tuition, qualified fees (some can’t be included in QEE like insurance and transportation), and add your books. From that subtract the total of grants, including the Pell grant. You are claimed on your parents’ taxes so you do not get a personal exemption (they do) but you do get a standard deduction. You said you earned about $6500, so you will be paying taxes on the Pell grant you receive that didn’t pay for books or other QEE.
I think you’ll find it easy to see how this all works by using TurboTax or TaxAct.
I thought so. I got a grant for both spring and fall. The problem is I lost the receipts so Idk how much I spent on books last year. That’s why I’m wanting to list the whole amount.