Student Stipend Check
I am currently an online student at Grand Canyon University, and have its costs taken care of by financial aid loans and have received a stipend check for the leftovers.
So I am wondering, does the amount of the student stipend checks have to go on the tax forms? And what types of Student Loans/financial Aid are required to go on the filings?
Please and Thank You
Answers
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Hello SilverRod97! Here is a general breakdown of how student loans and financial aid are typically treated for tax purposes.
Student loans themselves are not considered taxable income and do not need to be reported on your tax return. You borrowed that money and are expected to pay it back, so the IRS does not count it as income. However, if you pay interest on your student loans, you may be able to deduct up to $2,500, each tax year, of that interest on your return, depending on your income level.
The "stipend check" you received can be a bit more complicated. If those leftover funds came from loans, they are generally not taxable. If they came from grants or scholarships, the portion used for qualified education expenses (tuition, required fees, books, and required supplies) is typically tax-free. However, any portion of grant or scholarship money used for living expenses, room and board, or other non-qualified costs is generally considered taxable income and would need to be reported on your return.
Your school should send you a Form 1098-T, which shows the amounts billed and any scholarships or grants received. That form can help you figure out what, if anything, needs to be reported. For a full breakdown of the rules, IRS Publication 970 is a great resource: Publication 970 (2025), Tax Benefits for Education | Internal Revenue Service
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