Taxes and Grants????

Question

I was just wondering. If u get a grant for school or pay bills whatever u want to use it for. Do u have to file on ur taxes? I was interested in getting a grant. But when it comes to taxes next year. They always ask did u win anything or stuff like that. Would I have to put that down? If I dont will I get in trouble. Some please help me understand.

Thanks for taking time out to read and answer.

Answer 1

If you get a grant for school, you don't have to report any part of it that you paid for qualified educational expenses, like for tuition and fees.  But if you use part of it for room and board, or other expenses like paying bills, you have to report that part of it.

Answer 2

The government can not legally tax you on educational money that they give you in most states. Most grants are given through the government so the simple answer would be no.

Technically you do not win a grant. It's "granted" to you.

Basically, no.

Answer 3

Grants that are used to pay for tuition are generally not taxed.

Grants used for living expenses are fully taxable.