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I am a college student and since I started college, I put down as a non-filer on FAFSA. This year I am about to turn 24 and I keep receiving a 1098-t, but I don't have any income nor have I ever had a job and my tuition is paid through a grant and a scholarship.

I was wondering if I have to file taxes or I don't?

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    do your parents or somebody else count you as a dependent? Feb 9, 2023 at 21:18
  • @mhoran_psprep no i am not a dependent on my parents taxes for fasfa i put that they dont file which is a nonfiler and i have never had a job.
    – Linda Sims
    Feb 10, 2023 at 14:39

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Your tax-free scholarship is tax free as long as you spend it on the specified expenses. Any amounts spent on other expenses is taxable, and should be reported on a form 1040. From this page:

Scholarships, fellowship grants, and other grants are tax-free if you meet the following conditions:

  • You're a candidate for a degree at an educational institution that maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities; and
  • The amounts you receive are used to pay for tuition and fees required for enrollment or attendance at the educational institution, or for fees, books, supplies, and equipment required for courses at the educational institution.

Taxable

You must include in gross income:

  • Amounts used for incidental expenses, such as room and board, travel, and optional equipment.
  • Amounts received as payments for teaching, research, or other services required as a condition for receiving the scholarship or fellowship grant. However, you don't need to include in gross income any amounts you receive for services that are required by the National Health Service Corps Scholarship Program, the Armed Forces Health Professions Scholarship and Financial Assistance Program, or a comprehensive student work-learning-service program (as defined in section 448(e) of the Higher Education Act of 1965) operated by a work college.

Here is a survey process on the IRS website to use if you're not sure.

If you are a dependent on someone's tax return, and the taxable amount of your scholarship/grant income is more than the threshold for that year (in 2022: $ 1,150) then you are required to file a tax return. If you're not a dependent, then the threshold amount in 2022 is $ 12,950 (per that same page).

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  • Thanks for the great edit mhoran_psprep!
    – C.S.
    Feb 10, 2023 at 13:49

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