Mar
07
My daughter received a 1099-Misc from her college for a $3,000 education grant to study a foreign language.?
ByShe used the money to pay tuition for the summer program. Because she was sent a 1099-misc she has to pay tax on it when, if was a taxable grant, she still wouldn’t have to. What can I do about this?
Have the college issue a corrected form.
3 Comments
March 7th, 2010 at 2:30 pm
Don’t pay the taxes and it should just go away
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March 7th, 2010 at 3:13 pm
It’s not a grant. It’s taxable income–and taxable for SE tax purposes too ($424).
What she spent the money on does not change this.
However, now that the money is after-tax, the tuition can be used with the education deduction/credit.
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March 7th, 2010 at 3:27 pm
Have the college issue a corrected form.
References :