Pandemic aid from colleges not taxable, IRS rules

Taxes IRS AP
Posted at 1:48 PM, Apr 01, 2021
and last updated 2021-04-01 16:58:34-04

The IRS issued clarification this week that pandemic-related emergency aid is not taxable income, and should not be included in tax returns.

In the last year, some colleges provided aid for students affected by the pandemic.

This aid is intended for food, housing, course materials, technology, health care, and child care, the IRS said.

At large, public universities, the total dollar amounts going to students are in the millions. Much of this funding was made available through the Higher Education Emergency Relief Fund.

At The Ohio State University in Columbus, the institution is awarding grants of $500 to $1,000 to students, totaling up to $17.7 million. The University of Central Florida is awarding up to $25 million in grants.

“The pandemic has been difficult for so many families, and Ohio State is pleased to support students who may be facing financial challenges,” President Kristina M. Johnson said. “We thank our federal partners for helping to ensure that students are not derailed from their career and life goals.”

Taxpayers with questions on these grants can click here to visit the IRS website.

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The filing deadline to submit 2021 tax returns or an extension to file and pay tax owed is Monday, April 18, 2022, for most taxpayers. By law, Washington, D.C., holidays impact tax deadlines for everyone in the same way federal holidays do. The due date is April 18, instead of April 15, because of the Emancipation Day holiday in the District of Columbia for everyone except taxpayers who live in Maine or Massachusetts. Taxpayers in Maine or Massachusetts have until April 19, 2022, to file their returns due to the Patriots' Day holiday in those states. Taxpayers requesting an extension will have until Monday, October 17, 2022, to file.