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Tax Relief for Students: Pell Grants and Scholarships Exempt.

This bill aims to exclude Federal Pell Grants and a portion of scholarships used for room and board by full-time students from taxable income. This means students can keep more of their money for educational and daily expenses, reducing their financial burden.
Key points
Federal Pell Grants will not be counted as taxable income.
The portion of scholarships used for room and board by full-time students will also be tax-exempt.
These changes apply to amounts received in taxable years beginning after December 31, 2020.
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Additional Information
Print number: 117_HR_5353
Sponsor: Rep. Kildee, Daniel T. [D-MI-5]
Process start date: 2021-09-23