So my son just finished his community college education and has $1500 excess Pell grant funds (grant exceeded tuition and books.) He is now starting his remaining 2 years to get his bachelor's degree at a 4 year college. If he receives Pell grants there, it will not fully cover the cost of tuition. Can I (and my dependent child) choose to NOT report the $1,500 excess as taxable income in the year it was awarded if the excess definitely will be used for tuition for the following academic year at a 4 year college?
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Any Pell grant money not used for qualified education expenses is income which must be reported that tax year.
Any Pell grant money not used for qualified education expenses is income which must be reported that tax year.
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