Do I need to report funds received from HEERF II on my tax return? If so, then how do I do so?

Are HEERF II funds taxable income?
No, HEERF II funds are not considered taxable income (as of 2/22/21), however with regard
to student emergency grants, the notice states that there is no requirement to report those
amounts on the Form 1099-MISC; however, it states that “the waiver does not apply to the
requirement to file and furnish Form 1098-T, Tuition Statement, with respect to any
payments received for qualified tuition and related expenses, including qualified tuition and
related expenses paid with grants described in this notice.” 

No, you do not need to enter this on your tax return. CARES Act emergency financial aid grants are “qualified disaster relief payments under section 139 of the Internal Revenue Code” and should not be included as part of gross income. 

HEERF