I received $8000 in grants that were used to take a required course out of the country for my foreign language degree. Should this be exempt?

[aceliawatts-gmai]

Right now this is all showing as excess grant funds so it is income with no taxes held out of its showing that I'll have to pay taxes on that money?

[Vanessa A]

It depends. Was it part of your eligible education from a school in the US?  If so, then the actual cost of the course should be included on your 1098-T. 

If this money was used for room and board and travel expenses, then those expenses are NOT eligible education expenses and any grants or scholarships received to cover them would be considered taxable income and you would be liable for taxes on that money.