Solved: Do I include amounts paid for room and board using student loans on my return?
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cherieanna06
New Member

Do I include amounts paid for room and board using student loans on my return?

I included scholarship and grant money that I paid for rent, but not loans used to pay rent. Is that correct?
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MichaelMc
New Member

Do I include amounts paid for room and board using student loans on my return?

You are correct. The proceeds of student loans, being money that you are legally obligated to repay, are not income, and have no impact of your tax return. You can use the proceeds for anything. 

Scholarships, on the other hand, are income. If used to pay qualified post-secondary tuition and fees, books, and required materials, the income is tax-free. If used to pay for room and board, travel, recreation, and other expenses, the income becomes taxable.

For more information, please see IRS Pub. 970 Tax Benefits for Education.

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MichaelMc
New Member

Do I include amounts paid for room and board using student loans on my return?

You are correct. The proceeds of student loans, being money that you are legally obligated to repay, are not income, and have no impact of your tax return. You can use the proceeds for anything. 

Scholarships, on the other hand, are income. If used to pay qualified post-secondary tuition and fees, books, and required materials, the income is tax-free. If used to pay for room and board, travel, recreation, and other expenses, the income becomes taxable.

For more information, please see IRS Pub. 970 Tax Benefits for Education.

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