topic Do I need to file taxes or a return? in Education

Do I need to file taxes or a return?

aconfusedstudent — Mon, 09 Mar 2026 04:51:21 GMT

Okay, so here's the deal. I'm trying to determine if I owe taxes on the money that's refunded to my bank account each semester.

For one, on my 1098-T (which I could only get in my school portal, not the particular website where you directly access it), box 5 EQUALS box 1. Now. I've seen people say in that case, that means none of my scholarship or grant money is taxable. But here's my question:

I receive a refund, each semester that I take classes (meaning, I've taken classes each semester, including Summer, but if I didn't take classes in the summer one year, I probably wouldn't get a refund). The scholarship I have pays tuition DIRECTLY (I'm almost certain, no excess money as far as I'm concerned, hence why box 1 and 5 are equal). But, I also get pell grants from FAFSA, so I'm almost certain that these refunds I get are due to me not fully using the pell grant. Also to note, I won a scholarship my first year (from the school) which gave me extra money for my first two semesters (wasn't applicable after).

Now, my mother/parents file me as their dependent and NONE of the refunds from school I've gotten have exceeded 12,400 a year (for any year).

As for the refunds deposited in my bank account, I've saved the vast majority of the funds. I'm not sure, but I don't know if I need to file for the refunded money I do spend. I have received HEERF grants, which have added up to be more than I've spent (and apparently these are not taxable), which should cover my spending.

So do I need to file my taxes/a return, or do I not meet the requirements and I have nothing to worry about?

Re: Do I need to file taxes or a return?

Hal_Al — Sat, 26 Feb 2022 19:53:54 GMT

Q. Do I need to file taxes or a return?

A. No. As you surmised, since the amount, that is potentially taxable, is less than the $12,550 (2021 threshold), you are not required to file a tax return*. That assumes you have no other income.

HEERF grants are neither taxable or reportable.

*A dependent must file a tax return for 2021 if he had any of the following:

Total income (wages, salaries, taxable scholarship etc.) of more than $12,550 (2021).
Unearned income (interest, dividends, capital gains, unemployment) of more than $1100.
Unearned income over $350 and gross income of more than $1100
Household employee income (e.g. baby sitting, lawn mowing) over $2300 ($12,550 if under age 18)
Other self employment income over $432, including money on a form 1099-NEC

Re: Do I need to file taxes or a return?

aconfusedstudent — Sat, 26 Feb 2022 20:25:32 GMT

Okay, so Scholarships are NOT unearned income? And, say, I got refunded nearly 4000 one semester to my bank account, as long as that number does not exceed that 12,400 (or 12,550?) and I'm a dependent, like you said, no return or filing necessary? Thank you.

Edit: I also do not earn any money from a job.

Re: Do I need to file taxes or a return?

Hal_Al — Sat, 26 Feb 2022 20:32:09 GMT

Good question. Scholarships are actually a hybrid type of income. For most purposes taxable scholarship is unearned income. But, for the purpose of calculating a dependent's standard deduction, scholarship money is treated as earned income. A dependent's standard deduction is his earned income + $350 (minimum $1100, maximum $12,550).

In your case, no return or filing is necessary.

PS. The standard deduction is adjusted each year for inflation. $12,400 was the 2020 max.

Re: Do I need to file taxes or a return?

aconfusedstudent — Mon, 28 Feb 2022 21:02:50 GMT

Thank you very much.

Also another thing, do I need to do anything with the funds I have saved? Does it matter if the amount I've saved goes beyond that 12,550 threshold? Meaning this only deals with yearly income? I make sure to report how much I've saved to FAFSA, is that all I need to do?

Sorry if this is redundant in any way. Again, thank you.

Re: Do I need to file taxes or a return?

Hal_Al — Mon, 28 Feb 2022 21:19:58 GMT

Q. Meaning this only deals with yearly income?

A Yes.

Q. I make sure to report how much I've saved to FAFSA, is that all I need to do?

A. I don't know. This forum is for questions on income tax.