I started going to community college in order to transfer to a University. I am currently not trying to get a degree at the community college but I am from the University.

I qualified for a reduced tuition at my community college totaling a whopping $44 ($20 of which was for the spring semester coming up). My books cost me $456.41 (none of which I bought from my school, all of which where required textbooks), and I got a $522.19 laptop (It isn't technically required by my teachers, but I have some online classes).

For the 2012 - 2013 school year I got a $5882 grant from the Feds, and 250 from the State. (only $3382 of the Fed grant has been given to me, the rest is for the spring semester which will fall under next years taxes [I believe]).

My question is how much of the scholarship money will I have to pay taxes on?

Bonus: Are there any deductions I should know about?

These seem relevant, but I don't quite understand what it means for an expense to be "required" from a school, or what it means to have to be "eligible for a degree"...

From pub. 970

Topic 421

Incase this is important

I started working late this summer at a low wage and have so far made $3545.16 (this will be a bit above 4k by the end of the year). So far $502.14 has been withheld.

If I missed something important please let me know and I will try to respond as soon as possible.


1 Answer 1


There are too many qualifying questions like martial status, dependent status, annual income, etc.

Your answer is most likely in the Form Pub 970 you referenced:

Adjustments to Qualified Education Expenses

If you pay qualified education expenses with certain tax-free funds, you cannot claim a deduction for those amounts

If the grant is tax free, you can not claim deductions up to that amount. Even if you were able to expense all the educational expenses you list, I doubt you can exceed the grant disbursement disbursement amount.

I'm not a tax professional, so take my advice for what it is worth.

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