Students who receive the emergency aid under the Coronavirus Aid, Relief and Economic Security Act
to help with expenses resulting from the pandemic do not have to include those funds from gross income, the IRS said in a statement and a series of FAQs. The legislation authorized funds that colleges and universities can use to help students dealing with unexpected expenses because of the pandemic, such as expenses for food, housing or course materials, the agency said.The IRS also said in its guidance that emergency funds for students from state, local and tribal governments are not included in gross income. Additionally, higher education institutions don't have to file tax forms reporting emergency financial aid grants that students receive, according to the agency.
--Editing by Neil Cohen.
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