1099-MISC for State of CA grant to pay off loans

[jasmine213]

Hello, I received a 1099-MISC for a grant I recieved from the State of CA specifically designated to pay off student loans for tuition. Is this taxable and where do I have to report it?

[KrisD15]

It depends on the program this was administered through. 

“According to the IRS, student loan amounts forgiven under PSLF are not considered income for tax purposes. Learn more about the PSLF process.”

I advise you check with the California Student Aid Commission to learn what type of program you were in. 

"Should you have any questions, you may reach out to the contact center agents of the Federal Student Aid Office at 1-833-932-3439.

If you have any questions about your student loans, repayment options, and your rights as a Student Borrower, the California Department of Financial Protection & Innovation is available to help: https://dfpi.ca.gov/backontrack/"

CA Student Aid 

[jasmine213]

Hello! The award was issued from the department of healthcare access and information:  https://hcai.ca.gov/wp-content/uploads/2023/08/[product key removed]-FY-2023-24.pdf When I contacted them directly they said I needed to seek advice from a tax professional on whether this is taxable income. Please let me know if you have further guidance 

[MarilynG1]

In the GSSOP Grant Guide, it appears the grants are awarded to pay tuition and other costs for attending an eligible program.

You can enter your Education Expenses and your Grant Award in the Education section. 

As long as your Qualified Education Expenses exceed the Grant amount, the income would not be taxable.

Any excess grant income would be considered taxable income. 

Here's more detailed info on Scholarships and Grants.

@jasmine213