HEERF College student grant
Hi Terry
My son received $2600 in HEERF / CARES act grant from Loyola Chicago. Does this money need to go back into his 529 account? Will we get any tax paperwork from the school at the end of the year?
He has not been able to find a job in Chicago do to the pandemic and he has been using this money to make ends meet since he was not eligible for the stimulus money.
Thank you so much
Terry Says
This money does not have anything to do with his 529 account. Keep that money inside the account until it is needed to pay for tuition. The HEERF grant is a tax-free stipend, passed on by the university, and can be used for just the things your son is doing– food, rent, etc. Read the details in this IRS brochure on HEERF Cares Act grants.
