1098t

[BDLM]

My daughter received fafsa that covered her full tuition for 2021 so she did not have any out of pocket expenses for tuition. She has not received a 1098t. Would I need to report the fafsa when I file? I have read that because she didn’t have oop expenses she will not be getting a 1098t,  she is my dependant.

[MayaD]

“Financial aid and grants are generally not considered taxable income, provided the money is spent for tuition, fees, books and other supplies for classes,” he said. Grants and scholarships awards that are used on qualified education expenses, as defined by the IRS, are not taxable. Room and Board and transportation are not considered qualified expenses.

If the amount of scholarships/grants funds exceeds the amount of qualified education expenses, then your daughter needs to file and report the education expenses and grants on her tax return.