I’ve recently learned that any aid past tuition is considered taxable income. I transferred schools this past year and paid 16000 after scholarships at my first school. Then when I transffered I received 8000 in taxable grant aid. Since I paid so much in spring 2017, does that mean I owe no tax? Essentially, do my tuition costs in the spring undo the taxable income of the fall, or are they considered separately because they are separate schools?
You take the tax year as a whole. Add your tuition, books and fees from each semester (not room and board). Add the total amount you received in grants and scholarships.
See publication 970 from the IRS.
You take the tax year as a whole. Add your tuition, books and fees from each semester (not room and board). Add the total amount you received in grants and scholarships.
See publication 970 from the IRS.
If you had $16,000 of qualified education expenses in 2017, like tuition, qualified fees, and books, and you received $8,000 in grant aid, then none of the grant aid would be taxable, and you also might be able to claim AOTC (American Opportunity tax credit) on some of the tuition expenses (or your parents might, if you are their dependent for taxes).
But are you sure that the grant aid counts for 2017, like the tuition? Or was it disbursed in 2018?
Oh I see, your $16,000 tuition expenses were for spring 2017, so the fall 2017 grant of $8,000 should be in the same tax year 2017.