Saturday, November 5, 2011

How does a Federal Student Aid Grant affect the amount of my tax return?

So I am a single mother. I have a 4 year old daughter, and I was never married. This past year was the first year that I was in college and I received Federal Student Aid. Most of the money from that grant went to my tuition and I used the rest for other needs like groceries and gas. Every other year when i did not go to school and did not receive any money to go to school when i filed taxes I received about $5000 on my Tax Refund. Will the fact that I got Federal Student Aid mean that I will get less money back on my refund? I had heard that since not all the Student aid went to school related costs that the money I had left over that I used on groceries and gas is taxable, is that right? Will I still get around $5000 on my Tax Refund? And if not how much less am I looking at approximately?

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