Question

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.

Answer

 

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

Stop An E-File Return

Can you correct an e-filed tax return if it has already been submitted? Learn more from the tax experts at H&R Block.

Deducting Pre-Tax Premiums

Learn whether you can deduct pre-tax premiums on your taxes with advice from the tax experts at H&R Block.

Estimated Taxes Paid

Do you need to know your estimated taxes paid for past years. Find out where to search for this information. Get tax answers from H&R Block.

Claim Standard Deductions And Donations

Can you claim deductible charitable contributions if you have already taken a standard deduction? Learn more from the tax experts at H&R Bloc