You should be fine putting your grant money with your W-2 money because it simply increases "Wages, salaries, tips, etc." line on the return. They'll get the point that there was something else added to that. The only other place it might have gone was on the "other income" line, but I'm not sure without looking at the instructions.
By the way, are you sure your grant was taxable? Just in case, take a second and go to: http://www.irs.gov/taxtopics/tc421.html to review whether or not you needed to include that in your gross income. It sounds like you're probably right, that it is taxable, but it's a very fine line. It comes down to whether or not the grant is considered payment for your services as a T.A. or whether it is given freely. I remember my professor at Ursinus explain that the school was wasting money for our R.A.'s by not providing free housing (which would be tax-free) but instead paying them (which was taxable).
Thanks for the link! I checked it out and yeah, the FLAS is definitely a weird grant. I have it on the Bursar and African Studies department's authority that it's taxable. I know people who have not claimed it, but you know me - pretty darn honest. Plus, I'd hate to get audited (especially since the Dept. of Ed knows I was given that money).
I always wondered why our RAs didn't just get free room and board. I hate to think about all of the waste that our tuition dollars funded...
Getting only a little back is a GOOD thing! It means your money stayed where it belonged (earning interest) rather than took a nice 12 month vacation in sunny IRS-land (earning them interest? I don't know).
It is nice to treat the refund as "found money" rather than lump it into your budget though. I wonder what percent of Americans prefer a large refund because of the "forced savings" aspect of it.
This year you should use it to come out to PA and hang out with Jeff and I!
You're right - it is a good thing...just not as exciting I guess. I'm sure a lot of people like the forced savings aspect of it, but I'd be interested to know how many of those folks actually use the money for something pre-planned or just blow it (like I plan to). Thanks for the suggestion! I just might have to do that.... ;-)
Comments 4
By the way, are you sure your grant was taxable? Just in case, take a second and go to: http://www.irs.gov/taxtopics/tc421.html to review whether or not you needed to include that in your gross income. It sounds like you're probably right, that it is taxable, but it's a very fine line. It comes down to whether or not the grant is considered payment for your services as a T.A. or whether it is given freely. I remember my professor at Ursinus explain that the school was wasting money for our R.A.'s by not providing free housing (which would be tax-free) but instead paying them (which was taxable).
Reply
I always wondered why our RAs didn't just get free room and board. I hate to think about all of the waste that our tuition dollars funded...
Reply
It is nice to treat the refund as "found money" rather than lump it into your budget though. I wonder what percent of Americans prefer a large refund because of the "forced savings" aspect of it.
This year you should use it to come out to PA and hang out with Jeff and I!
Reply
Reply
Leave a comment