How Do You Report FAFSA Money On Federal Income Tax Returns?
The Free Application for Federal Student Aid, or FAFSA, is a form that can be filled out by students who are going to colleges and universities across the country. The information submitted is used to determine the student’s eligibility for various types of federal student financial aid. Because the amount of financial aid a person gets can be large, it is important to remember to report your FAFSA money on your federal income tax return at the end of the fiscal year. Doing this involves merely knowing how much FAFSA money you received, and knowing where to write it down on your income tax forms. Wait to receive a Form 1098-T from your school. This is a form detailing all of the federal grants and loans you’ve received during a given school year. You do not report the full amount of FAFSA financial aid on your income taxes–you report only the amount of money listed on Form 1098-T. Write the amount of money you received (listed on Form 1098-T) under the “Income” portion of your federal
