Grants and Scholarships

Do you claim student loans and grants as income at tax time?

My fiance has had a very good job and has been supporting me while I am going to school so I have had no income except for my student loans and grants which equal up to 15,000 dollars. Will I claim this as my income to pay my taxes? My finanicial aid advisor has not been the best with explaining things to me and rarely calls me back. Thank you!

Public Comments

1. all income no matter the origin must be reported....
2. I am not 100% sure but I think loans are not income but grants are. Call the IRS office they should be able to answer this question for you.
3. You will need to speak with a taxpayer not a financial aid advisor regarding your taxes. Or, you can go to the www.irs.gov website.
4. Federal or private student loans and federal grants are NOT considered income. Therefore you do not have to report them as earnings. In fact you do not even have to file a tax return for 2007. You will need to complete a new 2008-2009 FAFSA form if you will be attending school after July 1 2008 so you will maintain your eligibility for Title IV loans and grants. The FAFSA will ask you about income which you will put $0.00; there is also a question about money received on your behalf, such as gifts ect… This is where you should estimate (with a dollar amount) how much the living, eating, utilities ect… are worth, which you receive from your fiancé.
5. No, you do not report student loans or grants as income for income tax purposes. If you had no other source of income you do not have to file income tax and your boyfriend may be able to claim you as a dependent on his tax return.