No, a Pell grant does not need to be reported on your tax return, if you satisfy two IRS requirements that apply to all scholarships and grants:
- You must be enrolled in a program as a degree candidate, or you must be pursuing a training program that prepares you for specific types of employment upon completion.
- You must use the Pell grant only to pay for “qualified education expenses.”
Any portion of your Pell grant that is not spent on qualified education expenses is required to be reported as income on your tax return. Qualified education expenses include tuition and fee payments, and the books, supplies, and equipment required for your courses.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
