The Tax Reform Act of 1986 defined scholarships and grants received by students, minus fees, tuition, and costs of books and supplies as taxable income.
We strongly urge you to keep complete and accurate records and receipts of all your expenditures for books, supplies, and fees. You must also keep billing statements, award notices, and records of scholarships and grants received. It is your responsibility to keep these records for reference and documentation. Questions should be directed to the Internal Revenue Service or a tax expert.
The American Opportunity tax credit and the Lifetime Learning tax credit are available to help offset the cost of higher education by reducing the amount of your income tax. Consult your tax advisor or the IRS regarding eligibility for these tax credits.
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