Fed Financial

Can I include financial aid as part of my income on my tax return?

I want to file for a tax return this year in order to take advantage of the stimulus program. I have a W-2 but I only earned $660 in 2007. However, I started college and received about $27,000 in financial aid. Can I include this figure as part of my income so that I can go satisfy the $3000 minimum to take advantage of the program?

Public Comments

1. You didn't earn it, so no. Even if you could, your taxes would be higher than your rebate.
2. Qualified scholarships and fellowships are treated as tax-free amounts if all of the following conditions are met: You are a candidate for a degree at an educational institution, Amounts you receive as a scholarship or fellowship are used for tuition and fees required for enrollment or attendance at the educational institution, or for books, supplies, and equipment required for courses of instruction, and The amounts received are not a payment for your services. For additional information on Scholarship and Fellowship Grants, refer to Tax Topic 421, and Publication 970, Tax Benefits for Education.