Also, rather than reporting it as taxable income, a add on question you may know about.
My son just finished his community college education and has $1500 excess Pell grant funds (grant exceeded tuition and books.) He is now starting his remaining 2 years to get his bachelor's degree at a 4 year college. If he receives Pell grants there, it will not fully cover the cost of tuition. Can I (and my dependent child) choose to NOT report the $1,500 excess as taxable income in the year it was awarded if the excess definitely will be used for tuition for the following academic year at a 4 year college.
