Question by Lindsey H: Can I count my pell grants and loans as income on my taxes if I want to?
I am wanting to count my pell grants and loans as income so I have more of an income to file..can I do that?
Best answer:
Answer by the tax lady
No.
You can only count the portion of the grant that was over and above your tuition as income (because you are required to), look seek but it doesn’t count towards a refund.
What do you think? Answer below!
Dear LH: See http://www.IRS.gov/pellgrants. In some situations some of the Pell Grant will be required to be listed as income. Loans can be used as a deduction as it is considered paid by you with your funds, see form 8863.
This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more Errol Quinn Enrolled Agent
No. A grant is not earned income, and a loan is very definitely not income of any type.
Why would you want more income? You would just pay more taxes. You only get a refund on overpaid taxes. If you count grants and loans then you have more income and no taxes paid on it.