Form 1098-T and FAFSA Grants Question

swimcatsmom
Tue, 01 Feb 2011 15:30:29 +0000

The question about scholarships included in income is about taxable scholarships that were included in income or in the AGI if student filed a return. If you did not have any taxable scholarships (because they were all used for qualified expenses) then none should be included in income/AGI. So the answer to the question about how much scholarship money was included in income/AGI should have been 0. If you put an income amount that did not include the $9000 then later tried to say the income included $9000 you would get an error message if the income amount was less tha $9000.

For instance if the student’s income was $2000 and you then said that the $2000 includes taxable $9000 scholarship money it would throw out an error because there can not possibly be $9000 taxable scholarship money if the income is only $2000.

If none of the scholarship money was taxable you do not put it anywhere on FAFSA. They are only asking about taxable scholarships/grants.