Does the CRRSAA (Coronavirus Response and Relief Supplemental) or American Rescue Plan Emerg Grant money given to college kids need to be entered anywhere in Turbo Tax?

Forum|Forum|4 years ago
March 3, 2022
2 replies
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Second part: Do I reduce by QHEE expense by the amount received from CRRSAA/American Rescue?

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Best answer by JulieS

No, Coronavirus Response and Relief Supplemental grants are not taxable, nor do they reduce your Qualified Higher Education Expenses for the purpose of claiming an education credit or deduction.

You not required to enter any information about them on your tax return and your school shouldn't issue a 1099-MISC showing these amounts as income.

Click here to learn more.

JulieSAnswer

No, Coronavirus Response and Relief Supplemental grants are not taxable, nor do they reduce your Qualified Higher Education Expenses for the purpose of claiming an education credit or deduction.

You not required to enter any information about them on your tax return and your school shouldn't issue a 1099-MISC showing these amounts as income.

Click here to learn more.

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lori700Author

Very straight forward response and extremely helpful. Thank you!!

Hal_Al

Employee

The CRRSAA money is not taxable income and does not need to be reported, as income.

The answer to your 2nd question, do you reduce by QHEE expense by the amount received from CRRSAA/American Rescue, is a little more wishy washy. If the money was used to pay tuition, yes you cannot claim that portion for the credit. But if you used the money for something else, e.g. food, you can still claim the tuition paid. Reference:

https://www.irs.gov/newsroom/faqs-higher-education-emergency-relief-fund-and-emergency-financial-aid-grants-under-the-cares-act