Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and the Yahoo Answers website is now in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.
Trending News
my 18 yr old daughter is attending?
an accredited medical institute. she received a pell grant for $5,000 and a student loan also around $5,000, does the irs consider those taxable income, will she have to pay income tax on those, she had no other income? thanks....
3 Answers
- Anonymous9 years agoFavorite Answer
Loans are never taxable income because you repay them later.
Grants are ONLY taxable if the grant is for more than the amount of the qualifying expenses. if her tuition, fees, and price of required books & materials adds up to more than her $5000 grant, then its not taxable at all.
Any education expenses paid with a student loan can be used to qualify for the education credits. If you claim your daughter as a dependent then you claim those credits on your tax return, even if the loan is in her name.
- card-ronLv 79 years ago
Only the portion of the pell grant (if any) in excess of qualifying educational expenses would be considered taxable income. Student loans are never considered taxable income.
