student loans and Grants
I recieved student loans and Grants. But taxes
were not taken out. Does that mean that I do not have to
include it on my taxes? If I do, where do I put it and what
forms do I need to send with my taxes for it? I did not
recieve any forms about my loans for tax purposes but my
Grant information is included on my 1098-T form that
includes my paid tuition
-You don't report student loans. Loans are not taxable
income as they are subject to repayment.
Provided you are a candidate for a degree, scholarships and
grants are tax-free up to the amount you paid in tuition,
books, and fees. It doesn't matter if you paid the tuition,
books, and fees directly out of the tuition or grant money.
IRS Publication 520 has more information on the tax
treatment of scholarships, fellowships, and grants.
-On the student loan, you pay no tax on the proceeds because
you're going to pay it back (at least thats the usual way it
works). What you will report as a deductible expense,
subject to limitations based on your AGI amount, is the
interest you pay as you pay the loan off.
To answer questions on the Grant, you need to advise what
kind of grant was it? How was it used (ie to pay tuition,
any housing?, etc), is there any possibility you may have to
pay any/all of it back?