<p>Hello,</p>
<p>I received a form from my community collegue with a figure amount equivalent to the money used in my classes. I was awarded a full time pell grant for the fall semester and spring semester. However I attended only part time and the money was adjusted accordingly.</p>
<p>Do I have to declare that income and pay taxes on it?</p>
<p>The portion of the Pell Grant that went towards tuition, fees and textbooks (Qualified Educational Expenses) are not taxable. If you needed to purchase a computer that is qualified also.<br>
Any portion of the Pell grants that was used for living expenses, transportation etc is taxable.</p>
<p>
In most cases a computer is not a qualified expense. Only if a computer is required for everyone in the class. If it is not required, it is not a qualified expense (for taxability/non taxability of scholarships/grants)</p>