It depends when your divorce agreement was finalized and if any part of your grant exceeded qualified education expenses.
If your alimony was from an agreement executed
- after December 31, 2018 (or modified after December 31, 2018 in certain circumstances), then it would not be reported as income due to the Tax Cuts and Jobs Act signed into law December 22, 2017.
- before December 31, 2018, alimony received is reportable income
IRS Publication 970 Tax Benefits for Education, page 7 and 17: Pell Grants are free only to the extent that they are used for qualified education expenses during the period for which a grant is awarded.
For more information, see the resources below:
Do I need to report alimony I received from a former spouse?
IRS Interactive Tax Assistance: Do I include my scholarship, fellowship, or education grant as income on my tax return? This only takes 15 minutes and is online.
