The federal government provides several ways in which your income tax burdens can be reduced when you or your parents pay for a college education. Detailed information regarding these benefits can be found in IRS Publication 970.

In addition to providing tax breaks, some forms of financial aid are considered taxable income. Federal Work-Study earnings are just like income from any job. They are taxable income. Grants and scholarships can also be taxable income. You should save all your receipts for tuition, fees, books and supplies and consult a tax advisor to determine your tax liability.

Attendance and Tax Status of Awardees

All award recipients must be matriculated and in full-time attendance at the Graduate Center. They must also have a U.S. Social Security Number or Taxpayer Identification Number.

Taxes on Financial Aid Awards