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Stop taxing and allowing states to tax college students' financial aid refund money

Created by R.E. on November 08, 2012

There are millions of hardworking college students across the nation. How many of them owe the state and federal government back taxes on their financial aid money is unknown. Often it is the case that financial aid that is awarded semesterly to college students outweighs the costs of their tuition and fees. So, this money is refunded to students. Aside from purchasing books, meal plans, housing, and the like, many students rely on refund money to pay their bills and attend to other living expenses. Depending on where students file their taxes and who prepares their returns, refund money may be taxed as income regardless if the student pocketed a penny or not. There needs to be tax preparation reform in terms of training, and tax laws need to more clearly dictate how to handle refunds.

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