Pell Grant and taxes is a useful term, So What you think? Do you pay taxes on Pell Grants awarded money? What if my Pell Grant awarded money is less that the tuition fee, which i have paid to my college, and Turbo Tax is trying to be added into my income? What if i have received a little Pell Grant amount, which is not fulfilling my educational expenses, Should i claim for the remaining Pell Grant Amount, which i didn’t received yet?
Pell Grant and Taxes:
When it comes to the taxes applied on the money of Pell Grant, sometimes it is taxable income, while sometimes it is exempt from tax or you can say tax-free. You should also see my article, which will guide you Is Pell Grant Money Taxable or Tax-Free. If you are utilizing the Pell Grant awarded money for your books, college fee, school fee and equipment needed for your study, then your Pell Grant money is tax-free or exempt from tax. But if you are paying your house rent or purchasing a new bike as your school transport, then your Pell Grant amount is totally taxable or not exempt from tax. You should also go to a tax expert, which can guide you about the rest of the detail about Pell Grant and Taxes.
Pell Grants are just like a scholarships and student loans, which aretax free. According to the IRS, if the Pell Grant is used for the qualified education expenses, then it is tax-free, otherwise it is not exempt from tax. You should also submit a statement, which can show that your Pell Grant is used in a way that it is not taxable. If your school has not paid you the awarded money from the Pell Grant or financial aid department, you must approach the financial aid office to pursue.
Taxact.com is a well known brand in this regards, as you can use the different tax software to calculate the amount of your Pell Grant tax, if you utilize the awarded money in a way, in which it become taxable and doesn’t remain exempt from tax. So the above mentioned circumstance call clearly tell your that there are some special circumstance in which you pay taxes on your Pell Grant awarded money.