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If the only money I will receive this year is a Pell Grant, Stafford Loans, and VA Dependent College benefits, do I have to file taxes?

I have no other income. The only money I will receive is from Chapter 35 and my school financial aid.

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1 Reply
Hal_Al
Level 15

If the only money I will receive this year is a Pell Grant, Stafford Loans, and VA Dependent College benefits, do I have to file taxes?

Simple answer: no. You have no taxable income. VA benefits are non taxable and not reportable. Loans are not reportable income.  Pell Grants that pay for qualified educational expenses (tuition,  fees, books and other course materials) is not taxable income. However grants (but not loans or VA benefits) that pay for room & board and other living expenses is considered taxable income.   So, it depends on how the money was disbursed. Furthermore, you may voluntarily treat grants and scholarships as taxable income; in order to claim the refundable tuition credit.

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