Taxability of Higher Education Emergency Relief Fund (HEERF) grants to students:
Higher Education Emergency Relief Fund (HEERF) grants to students and Emergency Federal
Supplemental Educational Opportunity Grant (FSEOG) awards under the Coronavirus Aid,
Relief, and Economic Security Act (CARES Act), the Coronavirus Response and Relief
Supplemental Appropriations Act (CRRSA Act), and the American Rescue Plan (ARP) are
not taxable income for the student. See IRS Notice that states, "Emergency financial aid grants made by a federal agency, state, Indian
tribe, higher education institution or scholarship-granting organization (including
a tribal organization) to a student because of an event related to the Covid-19 pandemic
are not included in the student's gross income." Additional IRS guidance regarding
Higher Education Emergency Grants can be found here.
Course materials purchased with Higher Education Emergency Relief Fund (HEERF) grant
as a qualifying education expense and requirements for claiming a tax credit or tax
deduction:
Refer to IRS FAQ for information about when a tax credit or tax deduction may be claimed for college
expenses paid using emergency financial aid grant funds.
Reporting of Higher Education Emergency Relief Fund (HEERF) grants on IRS Form 1098-T:
In certain cases the higher education institution has information reporting requirements
for payments made with emergency financial aid grants. Refer to IRS FAQ for more information.
Significant drop in student or parent income due to COVID-19 circumstances since tax
year 2018 income used in filing 2020-2021 FAFSA (Free Application for Federal Student
Aid) or since tax year 2019 income used in filing 2021-2022 FAFSA:
If student and/or parent income has recently decreased or special financial issues
exist that were not taken into account on the 2020-2021 or 2021-2022 FAFSA filed,
reference the Financial Aid Income Change Appeal form to submit a request for professional judgment and a reevaluation of financial
circumstances. See Forms & Materials, Financial Aid Appeals forms. Completed appeal
forms should be filed by July 15 for a decision prior to the Fall semester.
Higher Education Emergency Relief Fund (HEERF) grant eligibility requirements and
application:
HEERF I (Cares Act) student grants:
To be eligible, students must be an enrolled WNCC student and must have a 2019-2020
or 2020-2021 Free Application for Federal Student Aid (FAFSA) on file with WNCC, be
a U.S. citizen or eligible non-citizen, and otherwise meet all federal student financial
aid eligibility criteria. Students enrolled exclusively in online courses prior to
March 13, 2020, are not eligible to apply. Congress expanded the allowable uses for
awards made under the Coronavirus Response and Relief Supplemental Appropriations
Act (CRRSAA) for unspent CARES Act funds.
HEERF II student grants:
Institutions are required to prioritize grants to students with exceptional financial
need, such as those who receive Pell Grants. HEERF II funds can be awarded to online
students. Recipients must be a U.S. citizen or eligible non-citizen.
WNCC’s determination of Higher Education Emergency Relief Fund (HEERF) grant recipients:
View the CARES Act Reports provided on WNCC’s COVID-19 Information page.
Allowable expenses for Higher Education Emergency Relief Fund (HEERF) grants:
HEERF I (CARES Act) student grants:
Students may use grant funds to pay expenses related to the disruption of campus operations
due to coronavirus, such as for basic needs (e.g., rent, groceries, utilities, etc.),
health care, technology needs, child care or dependent care, course materials, and
transportation.
HEERF II and HEERF I (CARES Act) student grants awarded under CRRSAA guidance:
Institutions may award student grants for any component of their cost of attendance
or for emergency costs that arise due to coronavirus, such as tuition, food, housing,
health care (including mental), or child care.