Scholarship/Grant Question For Taxes

[WImom]

Do I have to do anything special with my taxes this year because I took the WI TEACH Scholarship for school and a $500 Grant for new items for my childcare?

[TomCopeland]

scholarship

Do I have to do anything special with my taxes this year because I took the WI TEACH Scholarship for school and a $500 Grant for new items for my childcare?

You must report as income the value of your scholarship and the $500. Then, you can deduct as a business expense the value of the scholarship and the $500 based on the normal rules of depreciation.

[WImom]

Thanks!

[Unregistered]

What if the $500 was not spent yet? I also received a grant award...but have not purchased anything with it yet, and will not actually receive the money until the spring

[Heidi]

What if the $500 was not spent yet? I also received a grant award...but have not purchased anything with it yet, and will not actually receive the money until the spring

You don't claim it either way until you received the money (as income) or spent it (as an expense). So, Tom's answer still applies, even if you were told you'd get the grant last year. It's when you actually GET the money that matters.

[WImom]

Okay now that I'm actually entering this in MMK I'm confused. I entered the amount I got on T-1098 from the college and the $500 grant in "Other Income".

now to enter them in expenses - the grant was all toys so I entered that as 100% business under toys.

BUT how and where do I enter the schooling? Do I enter the amount from the T1098-T? I didn't actually pay anything out of pocket to the school for this year because I only took 2 classes total so everything equaled out with TEACH. I did pay for books out of pocket but was reimbursed for some of it. Do I just enter the difference of my books someplace as well?

[TomCopeland]

Grant

What if the $500 was not spent yet? I also received a grant award...but have not purchased anything with it yet, and will not actually receive the money until the spring

You report grant income (like all income) in the year you receive it. You claim expenses related to the grant in the year you paid for them.

[TomCopeland]

Grant

Okay now that I'm actually entering this in MMK I'm confused. I entered the amount I got on T-1098 from the college and the $500 grant in "Other Income".

now to enter them in expenses - the grant was all toys so I entered that as 100% business under toys.

BUT how and where do I enter the schooling? Do I enter the amount from the T1098-T? I didn't actually pay anything out of pocket to the school for this year because I only took 2 classes total so everything equaled out with TEACH. I did pay for books out of pocket but was reimbursed for some of it. Do I just enter the difference of my books someplace as well?

If you paid for schooling, enter it under "Legal & Professional Services." Same thing for books you paid for.