Pell Grants/What tax year do you file the income for?

<p>Hi. I am working on my taxes and have run into a huge dilemma. The award aid years for Pell Grants run from 2010-2011 or 2011-2012. Do I file all of the 2011 aid for my 2011 taxes as listed on the two separate T-1089(I think that's what it's called) forms? The portion spent in 2011 from the 2010-2011 aid year? Or claim the 2011-2012 Award for 2011? Any feedback will be appreciated. I know what qualifies as educational vs. non-educational expense and thus would be income, but I'm just having trouble figuring out how to split the figures up.</p>

<p>The amounts on the 1098T you received in 2012 should be for the tax year 2011, i.e. spring, summer and fall of 2011. It should reflect expenses paid in 2011 and scholarships/grants credited to your account in 2011. Notice I used the word should several times. Is that what the numbers on the 1098T show? You may have to refer back to the actual bills you received and payments made to determine the dates and amounts actually paid in 2011. The bills should also show when the grants were credited to your account. </p>

<p>So yes, award years and tax years don't match up but the 1098T should(there's that word again) reflect the tax year 2011. Did your school report a figure in box 1 or 2? Is box 7 checked?</p>

<p>You mention award year 2010-2011. What did you do last year for taxes with the 1098T you received in 2011 for tax year 2010?</p>

<p>"The portion spent in 2011 from the 2010-2011 aid year?"</p>

<p>The portion spent in 2011 from the 2010-2011 aid year should be included on the 1098T you received this year.</p>

<p>Remember also that the 1098T reflects any payments you made in 2011. SO...if you paid your spring 2012 term bills in December, they will appear on your 1098T for 2011.</p>

<p>Thanks for your advice. I called the Financial Aid and Student Account offices and they explained it to me. My 1098T charges reflected an extremely low amount since I actually registered in 2010 for the start of the 2011 school year, but I didn't actually pay until 2011.
The year before I was self employed and received minimal aid. It wasn't income because it all went towards school related expenses. I only had to file my business income and pay taxes on that, rather than claim the school related aid amounts.</p>