May 31, 2020 11:07 pm

COVID-19-Related Emergency Financial Aid Grants Not Taxable

If you are an undergraduate and graduate student who received an emergency financial aid grant as a result of experiencing unexpected expenses or unmet financial need as a result of the COVID-19 pandemic, you are not taxed on the grant (FAQs at These grants are treated as qualified disaster relief payments. However, because they are not taxable income, they cannot be the basis on which to take any deduction or credit, such as the tuition and fees deduction, the American opportunity credit, or the lifetime learning credit.

Tax Glossary

Separate return

Return filed by a married person who does not file a joint return. Filing separately may save taxes where each spouse has separate deductions, but certain tax benefits require a joint return.

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