College Financial Aid
College in the United States is expensive. In the 21st century alone the cost has doubled and only continues to rise (6.8% in 2021). The average cost is 35,331 per year and for most Americans, this is impossible to pay without financial aid. So, let’s say you are in college, have a student loan, a few grants, and scholarships, and a work-study job through your college. These all affect your tax return and future financial liabilities, especially with student loans. Then it’s time to complete your tax return, you may find yourself asking what payments are considered income, what can be deducted, and how can I make sure I’m planning my taxes to minimize financial responsibilities in the future.
Grants and Scholarships
First, let’s look at the effects scholarships and grants have on your tax liability. Financial aid in the form of grants and scholarships doesn’t need to … Read More