Scholarship + grants as taxable income count towards social security credits

[curiousv]

Jurisdiction

Washington

A student is 4 year degree student with WGU and he received Pell grant $ 2908 + WA state need grant - $2810 = Total $5718.

Tuition with WGU was only $3035 for 6 months (that includes books and other fees) term and remaining amount of $2683 was paid to him as refund.

To my understanding this refund money he got is considered taxable income because it was not for qualified expense like Tuition etc.

Once he declare this extra refund he got from his school he can get American opportunity credit correct?

 

[army judge]

Once he declare this extra refund he got from his school he can get American opportunity credit correct?

Mate, I suggest you consult with the school financial aid department, the IRS, your state tax authorities, a CPA, or a tax attorney.

Be very careful about accepting personal tax advice from people or entities you haven't fully vetted!!!!

 

[ElleMD]

American Opportunity Tax Credit: Questions and Answers