Any tax experts - Pell grant, taxable scholarships/grants, and hope tax credit query
Can one choose to use a Pell grant to pay Room and Board expenses making it a taxable grant and use loan money to pay tuition and fees making the tuition and fees useable for the Hope credit? I have been trying to figure this out from the IRS970 but am not quite sure. Taxwise this would be a better way to file for my son but i am not sure if it is permisable.
I know the Pell grant can be used for other expenses other than tuition/fees because my other kid has a full tuition waiver scholarship so her pell is used for other expenses so in her case her Pell is automatically taxable. So I know she cannot use the Hope credit. Just not sure if one can elect to do it that way when there is no tuition scholarship.