Hello,
I am a single parent of two children. I attend school full-time and did not work in 2016, so have no w2/earned income from a job. I qualified for and recieved financial aid disbursements in the amount of $10,700+ after paying my tuition and fees. The total amount of grants/scholarships I received were $10,006 (I also had financial aid loans).
I know that I can claim the majority of this $10,006 as taxable income because I used most of it for living expenses for my family.==>Correct; Any grant or scholarship money used for other purposes ,i.e., housing, is considered taxable and needs to be reported.
I want to claim enough to earn my credits for my 2 children, EITC if possible, and the education credit. Is this possible or not allowed by the IRS?===>Not allowed by the IRS; To qualify for EITC you must have earned income from working for someone or from running or owning a business or farm and meet basic rules.you need earned income; Earned income includes all the taxable income and wages from working either as an employee or from running or owning a business. It also includes certain other types of taxable income. Earned income :Wages, salaries, tips and other taxable employee pay; Net earnings from self-employment; Union strike benefits or etc.
If the money is applicable, how do I fill out my tax forms? I want to do this correctly and do what is in best financial interest for my family>As mentioned above. |