IRS Clarifies Higher Education Emergency Grants Reporting

The IRS up to date its continuously requested questions on greater schooling emergency grants, in accordance with a Tuesday information launch.

The two new questions handle how college students and better schooling establishments ought to report pandemic-related emergency monetary help grants.

• Emergency help granted to college students due to COVID just isn’t taxable.
• The new FAQs advise that college students at greater schooling establishments that use federal funds below the CARES Act to cancel or discharge college students’ overdue balances, equivalent to tuition and charges, not embrace them of their gross incomes.
• Higher schooling establishments do not need to report data on Form 1099-MISC if the establishment makes use of …