I have a question about educational grants. Is my Pell Grant taxable if the amount I received for my Pell Grant is more than the amount billed for tuition and related expenses on my Form 1098-T.



Under certain circumstances is a Pell Grant taxable. Pell Grants and other Title IV need-based education grants are considered scholarships for tax purposes. So, Pell Grants and other educational grants are tax-free to the extent you use them for:

  • Qualified tuition
  • Fees, books, supplies, and equipment required for your course of instruction

You must use the funds during the period for which you receive the grant. However, if you do not use the entire amount of the grant for qualified education expenses the remaining amount is taxable.


Related Topics

Related Resources

Form 8283 -Large Item Donations

Learn how to deduct large item donations of more than $500 with the tax experts at H&R Block.

What are the documents needed to deduct medical expenses?

Find out which documents you need to deduct medical expenses from your taxes with advice from the tax experts at H&R Block.

I have a question about the allowable IRS tuition fees deduction on my tax return. Is there a tax write-off for college

Do you qualify for an IRS tuition and fees deduction? Learn more from the tax experts at H&R Block.

I am itemizing my tax return. Which medical expenses can I deduct?

Learn which medical expenses are tax deductible with advice from the tax experts at H&R Block.