caitlinsmom Posted February 1, 2011 Share Posted February 1, 2011 We recieved student loans last year for living expenses while going to school. We did not pay interest on the loans because we were still actively in school. So dumb question..... because we used the student loans as living income do we claim them as "other" income? I know they are loan but because they were used for living expenses I didn't know if we should. Okay now I feel foolish.......:leaving: Quote Link to comment Share on other sites More sharing options...
plansrme Posted February 1, 2011 Share Posted February 1, 2011 Not a stupid question at all, but the answer is that no, you do not pay income on the loan, as long as it is a bona fide loan with the expectation that it will be repaid. If there is no real expectation that it be paid, then it is a scholarship or a gift or compensation and possibly taxable. If it eases your mind, I am an attorney, and about half of my practice is tax-related. Terri Quote Link to comment Share on other sites More sharing options...
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