How does a non needy grant effect my income for tax purposes? This is for a grand daughter I am raising.

ANSWER

Expert Mark Anderson's Answer:

Grants are usually taxable unless the legislation creating the grant provides that it is nontaxable.  Here is some information from the IRS:

http://www.irs.gov/instructions/i1099g/ar01.html#d0e190

Without having additional information it is difficult to answer.  You woul need to provide additional information like what is the grant and who provided the grant.  I would suggest asking the entity providing the grant.  

Mark Anderson, JD

Montana

21 yrs experience

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