You may be able to claim some of your college costs as credits on your Federal tax return. Information about the HOPE scholarship and Lifetime Learning Credits is available.
Your student may be required to include part of the financial aid they received as income to be reported on their federal income tax return.
According to the Internal Revenue Code, if the total amount of scholarships and/or grants received in the calendar year exceeds the amount paid for tuition and "related expenses" (e.g., fees, books and supplies), the excess must be included in the recipient's gross income.
IRS Publication 520, Scholarships and Fellowships, offers a complete treatment of the subject. For tax purposes, tuition waivers; ISAC-Monetary Award Program Grant; military scholarships; private or outside scholarships; talent and athletic grants-in-aid designated for tuition, fees, books and supplies; MPO, MRS, and HPS grants; Student-to-Student Grant; SEOG; Pell Grant; and departmental scholarships, grants and fellowships should be included.
Athletic grants-in-aid designated for room and board are taxable and must be included in your gross income. Federal Work-Study earnings are to be reported as income, not as scholarships or fellowships. Do not include student loans in the calculation of gift aid received. Amounts received for room and board in connection with a Resident Assistant position (ORL) should not be included in taxable income, but should be included as untaxed income.
This information is intended to inform you of the law and is not meant to provide legal or professional advice. If you have questions about the application of this law to your specific situation, you should contact the Internal Revenue Service or your personal tax advisor. Additional information can be found at the Internal Revenue Service Web site .
Federal Tax Benefits for Tuition and Fees - Information about the Hope Scholarship tax credit, the Lifetime Learning tax credit, the tuition and fees tax deduction, and other IRS related information.
© Illinois State University • Consumer Information • Customer Satisfaction Survey • An equal opportunity/affirmative action university encouraging diversity. • Privacy Statement • This document is available in alternative formats upon request by contacting the Financial Aid Office at (309) 438-2231 • Email questions to:
