Q. My daughter received a refund from her college (housing) and deposited it in her checking account. How does she report that income for her taxes?
A. What you described does not constitute taxable income. Getting a refund from college is no different from getting a refund from Walmart for returned merchandise.
What's the rest of the story? For example, was the housing paid by scholarship? Even then, it's not the refund that makes it taxable. It's the fact that room & board are non qualified expenses for tax free scholarship.
