Do I have to report untaxable grants?

[doanjenny]

I’ve been trying to figure out if I have to report my ARP Relief grant. I did some research and figured out it should be untaxable. At first, I did report it to see if it affected my tax return estimate at all. I was asked if I used the money for room and board, and of course I did. I’m pretty sure the whole point of the relief grant was to help pay for my room and board, food, and other expenses. This caused a big decrease in my tax returns, and as someone new to filing their own taxes, I’m not really sure if that’s correct. Should I still report it as other non-reported grants/scholarships, or am I supposed to just leave it out of my tax report?

[JulieS]

Yes, you should leave this off your federal tax return.

You do not have to report this type of grant on your federal tax return at all. If you are filing a state return and they have chosen to tax your grant, you may need to add it when you do your state return.