Pell Grant and Tax Return

Forum|Forum|5 years ago
September 30, 2020
7 replies
63 views

In 2019, I got Pell Grant $5000, used $600 for books. My income from W2 was $2800. Total of my taxable income is $7000 (5000-600+2800). Do I still need to file Tax Return even my income is less than $12200 of Standard Deduction?

Best answer by Hal_Al

Carl's answer is correct: you are not required to file a tax return, based on the information you provided, regardless of whether you are someone else's dependent or not.

But, for others reading this, some clarification may be needed. The $12,200 standard deduction and filing requirement applies only to people who cannot be claimed as a dependent.

The filing requirement for people who can be a dependent is:

Total income (wages, salaries, taxable scholarship* etc.) of more than $12,200.
Unearned income (interest, dividends, capital gains) 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 $2100 ($12.200 if under age 18)
Other self employment income over $400, including box 7 of a 1099-MISC
Gross income was at least $5 and his spouse files a separate return and itemizes deductions

*Taxable scholarship, including Pell grants, is treated as earned income, but only for purposes of calculating a dependent's standard deduction.

Carl

Level 11

Based on the information you have provided, you only need to file a tax return if any taxes were withheld from your W-2 income, and you desire to get those withheld taxes refunded to you. Take note that only the amount shown in box 2 of your W-2 will be refunded. The amount shown in box 4 (social security) and box 6 (Medicare) are never refunded.

Be aware that if you have any self-employment income that gets reported on SCH C, and that income is more than $400, then you are *required* to file a tax return.

Hal_Al

Answer

Level 15

Carl's answer is correct: you are not required to file a tax return, based on the information you provided, regardless of whether you are someone else's dependent or not.

But, for others reading this, some clarification may be needed. The $12,200 standard deduction and filing requirement applies only to people who cannot be claimed as a dependent.

The filing requirement for people who can be a dependent is:

Total income (wages, salaries, taxable scholarship* etc.) of more than $12,200.
Unearned income (interest, dividends, capital gains) 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 $2100 ($12.200 if under age 18)
Other self employment income over $400, including box 7 of a 1099-MISC
Gross income was at least $5 and his spouse files a separate return and itemizes deductions

*Taxable scholarship, including Pell grants, is treated as earned income, but only for purposes of calculating a dependent's standard deduction.