Pay state tax for a state grant for college?
I'm doing state taxes for my state (Maryland) and it states that I should put my gross income on the first line, which determines the rest of the tax process. Should I include the Maryland state grant issued to me for college? The reason i'm asking is because this determines if i owe or get a refund.
Public Comments
- Charlie: Grants and scholarship funds are considered non-taxable, as long as they are used for "qualified educational expenses". Qualified expenses include: Tuition School fees Books Supplies and equipment required of all students in your degree program Common expenses that are non-qualified educational expenses include: Room Board Transportation Insurance Supplies and materials that are not REQUIRED of ALL students If you used your entire state grant for qualified educational expenses, you do not report those funds anywhere on your return - state or federal. If you used any part of the state grant for non-qualified expenses, you are required to report the amount that was spent on non-qualifieds as "wages", even though they are not shown on your W-2. A taxpayer reporting scholarship funds on a federal tax form is instructed to write the amount being added to wages, along with the code "SCH" - I'm not sure where or how you would report those funds on your Maryland form (but probably the same way). I hope that helps - good luck to you.
