1099-G

[dotterwick]

Received a 1099-G marked as "Taxable Grant"   It was for educational expenses and supplies for my

autistic son.  Would this qualify as exempt from tax since it was a grant used for educational   

purposes for my autistic son?  100% of the grant money was used for resources for my son.

[DianeW777 · Accepted solution]

It is not exempt.  Scholarships and fellowship grants are now reported on Schedule 1, line 8r (TurboTax will take it to the appropriate section of your return).  It is considered earned income for the earned income tax credit (EITC) depending on whether your child qualifies.  Your child would not qualify for EITC if they are your dependent.

There are no special deductions for the money even though it was used to purchase educational resources.  How to report the income (do not report under 1099-G):

• Wages and Income > Scroll to Less Common Income > Select Start or Revisit next to Other income not already reported on a Form W-2 or Form 1099 > Continue through the questions until you can enter the description and amount.
  • Be sure to answer 'Yes' you have wages and 'Other' as the source of other earned income, the next screen will allow the description (Taxable Grant) and amount.