Form 1098-T and FAFSA Grants Question

daimos0
Tue, 25 Jan 2011 20:53:43 +0000

I’m filing my 1040ez 2010 and FAFSA for next year right now and I’m in a bit of a dilemma.

My total school bill for 2010-2011 is about $10,000, with room/broad being $11,000. (total of $21,000)

Luckily I’m paying for it all via a mix of loans, and generous grants.

Grant wise I receive the:

Federal Pell Grant for $4,400
CT Aid Public Col Stdnt Grant for $3,000
Tuition Remission Grant UG I/S for $3,500

Global Citizen Award for $750 (scholarship)

I took out loans
Federal Direct Subsidized Ln 1 for $5,500
Federal Direct Unsubsidizd Ln1 for $2,000

So I have a total of $10,900 in grants, and $7,500 and as as a result I paid about $2500 out of pocket, split into $1250 every semester.

Recently my 1098t came in and box 5 (scholarships and grants) says $16550 and box 2 (amounts billed) says $9928.

I’m doing my FAFSA right now and my question is, do I have to enter the remainder of box 5- box 2 as taxable income? I’m very confused. I’ve only received one scholarship applicable for this spring semester for $750. And do I report this for my tax return?

Any help is appreciated thank you!

Jake