3 Ways My Scholarship or Federal Pell Grant is Tax Free
If you’re entering college and have just been awarded a scholarship or perhaps a federal Pell grant, congratulations are in order. This will certainly help to defray the high cost of college and its great news. However, you need to find out if any part of it is classified as income. If so, it must be reported on your tax return. There are various criteria that will tell you if the federal Pell grant or scholarship is taxable income.
When is a federal Pell Grant or a scholarship tax free?
- You are registered as a full time or a part time student pursuing a degree at an accredited primary or secondary or a post-secondary institution.