Is grant money from VocRehab and Missouri WIOA towards higher education taxable on our son's tax return. I received no statement for the amount.

Forum|Forum|2 years ago
February 19, 2024
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It is a private welding school and so provided no 1098T but did provide a detailed invoice of what we paid vs what was paid with grants so I entered that and turbo tax is telling me that he has to enter the grant amount on his own tax return but since they were specific types of government assistance for help with job skills, I think those are not taxable but I cannot find the answer on the internet. Thoughts?

TurboTax Deluxe Online

Hal_Al

Employee

Q. Is grant money from VocRehab and Missouri WIOA towards higher education taxable on our son's tax return.

A. No. Grants the pay for qualified expenses (tuition, fees, books and course materials) are not taxable.

But, you may not use those expenses to claim a tuition credit on your (or the student's) tax return. You may only use the expenses, you paid out of pocket.

You say "Turbo tax is telling me that he has to enter the grant amount on his own tax return"

You've entered too much info, on your return. You should enter only what you paid out of pocket. Do not enter the grants or the expenses they paid.

Since, you did not get a 1098-T, his school my not be an "eligible institution". Ask the school id they are.