Pell grant and taxes

<p>I'm hoping that I'm placing this post in the right section. I receive a pell grant for my classes each semester. I was told that a form that's called 1098t will be sent out. I have used all of my grant except for 1,000 on books, classes, and tuition. Will the IRS tax me for just the 1,000 or my whole pell grant? I'm not even sure how to put anything on my taxes for it. Thank you.</p>

<p>First of all, you only need to file taxes if your total income is over a certain threshhold so that you owe. Pell amounts are under that amount, so unless you got other grants or also work and earn money, that isn’t going to be an issue. Also, amount that could have a tax bill attached to is would be the grant money you received in the calender year minus the tution, fees, books, necessary supplies that you paid out. So if you have $1000 of PELL actually received in 2013 that you did not use towards books, classes and tuition, then that is the amount you need to add as unearned income for your 2013 taxes. But unless your total income is above the taxable threshhold, it isn’t going to be an issue. The taxes will be for your total income over the tax threshold including the $1000. If you are filing just to get back withholdings, yes, you will include the $1000 of the PELL. Bear in mind that this is money actually received in 2013, not what you were awarded for the whole school year–if you have some that is going towards the new semester starting in 2014, don’t include that.</p>

<p>

You have taxable scholarships of $1000.

See [Publication</a> 970 (2013), Tax Benefits for Education](<a href=“http://www.irs.gov/publications/p970/ch01.html#en_US_2013_publink1000178011]Publication”>http://www.irs.gov/publications/p970/ch01.html#en_US_2013_publink1000178011) “How to Report”</p>

<p>BTW, you may not require to file taxes. See [Publication</a> 501 (2013), Exemptions, Standard Deduction, and Filing Information](<a href=“http://www.irs.gov/publications/p501/ar02.html#en_US_2013_publink1000220702]Publication”>http://www.irs.gov/publications/p501/ar02.html#en_US_2013_publink1000220702)</p>

<p>^Correction: You may have taxable scholarships of $1000.</p>

<p>Did you have income from jobs in 2013? If so, how much? Were taxes withheld from any job income?</p>