Coronavirus Related College Grants

Students won’t be taxed on coronavirus-related grants they receive
from colleges and universities under the CARES Act. The law allows schools
to use federal stimulus funds they get to award emergency financial aid grants to their undergraduate and graduate students facing urgent financial needs resulting from the COVID-19 pandemic or shuttered colleges and universities. These grants are nontaxable qualified disaster payments according to the Internal Revenue Service. However, students who use the money to help pay for online learning and course materials cannot claim these expenses for the above-the-line deduction for tuition and fees.