Just wondering,

If I received financial aid (lots of grants and a few loans), does this have to be turned in on taxes?

I was planning to file an 1040EZ online and noticed the question "Did you receive earnings from a Qualified State Tuition Program?"

I figured this was financial aid, but I'm not really sure, so do I have to fill out a different form?

1/24/2006 10:42:52 AM

i forgot, but if so they will send you a tax form, like a 1099 or something. They probably legally have till Jan 31 to send it out, so wait until the 2nd week of Feb, and if you don't get something by then don't worry about it.
(and don't hold me liable if the IRS comes to get you!)

1/24/2006 11:05:20 AM

A Qualified State Tuition Program has nothing to do with financial aid. It's referring to programs like 529s.

1/24/2006 11:06:37 AM

BobbyDigital's right. In addition federal/state grants generally don't get reported as income at all.

Also, anything you take out in loans (Stafford / Perkins / private / etc) to pay "qualified tuition expenses" can be claimed as a tax credit under the Hope or Lifetime Learning credits. You'll get a statement from NCSU showing how much you can claim.

IIRC there's a $2K max on Hope, $4K on Lifetime Learning...but either way it's a big chunk of taxes you don't have to pay (and def saved my ass this year )

[Edited on January 24, 2006 at 11:21 AM. Reason : ---]

1/24/2006 11:20:52 AM

I did take out a Stafford and Perkins loan, but I also had $4000 in grants - I didn't pay a penny to the school

1/24/2006 11:37:45 AM