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.
Trying to determine the cost of tax preparation or H&R Block’s prices? Find out why there is no one-size-fits-all answer when it comes to tax prep.
If you need help handling an estate, we're here to help. Learn how to file taxes for a deceased loved one with H&R Block.
Tax preparers can have various designation and specialties. Learn how different types of tax preparers at H&R Block can help you in person or virtually.
Here are the top tax questions our professionals got this year – with answers for you! How can you use this? Read on to get answers from H&R Block.