<p>Hi:</p>
<p>Do educational grants from schools count as taxable income? For example, we received the UC Blue and Gold tuition grant. </p>
<p>Is that amount considered taxable income? How is this factored in to form 8863?</p>
<p>Thanks!</p>
<p>Crizello, yes all grants and scholarships may be taxable to the extent that they exceed qualified expenses. The college will issue a 1098T for the student which, along with any out of pocket expenses for books, fees, and other qualified expenses, will be helpful in figuring out the best way to file. IRS Publication 970 explains all of this in great detail and you will find much more info on the 1098T/AOC thread currently being discussed on this board.</p>