I just found out that FA is considered as taxable income. This is definitely news to me, so I need some help with my FAFSA for the 2011-2012 school year.
Details: I go to a community college and live with my parents. I received about $7800 total in grant disbursements from FA. I didn't have to pay for tuition since I had a BOG waiver to cover that; all I had to pay was a $25 health fee/semester and of course, for the required books (my college listed my COA as around $10K though, which to me seems a quite exaggerated since I am living with my parents). Apparently the money should be spent only for educational purposes, and but I have used ~$100 of it on food and another ~$450 on a mini laptop. I've been told by some that since it is a disbursement I'm allowed to use it any way I want.. so I'm still confused whether I'm allowed to use the money to buy, say, a shirt for example.
How much of my FA would be determined as taxable income? And exactly how would they know if I've been spending some of my FA on non-educational purposes? How would they know how much I've spent on books? Should I hold out on renewing my FAFSA until these taxes are done?
I have never worked before and thus have no experience with taxes so any help would be greatly appreciated.
Details: I go to a community college and live with my parents. I received about $7800 total in grant disbursements from FA. I didn't have to pay for tuition since I had a BOG waiver to cover that; all I had to pay was a $25 health fee/semester and of course, for the required books (my college listed my COA as around $10K though, which to me seems a quite exaggerated since I am living with my parents). Apparently the money should be spent only for educational purposes, and but I have used ~$100 of it on food and another ~$450 on a mini laptop. I've been told by some that since it is a disbursement I'm allowed to use it any way I want.. so I'm still confused whether I'm allowed to use the money to buy, say, a shirt for example.
How much of my FA would be determined as taxable income? And exactly how would they know if I've been spending some of my FA on non-educational purposes? How would they know how much I've spent on books? Should I hold out on renewing my FAFSA until these taxes are done?
I have never worked before and thus have no experience with taxes so any help would be greatly appreciated.