<prompt> Human: So in doing my taxes with TurboTax and it goes pretty smooth before I input my financial aid stuff. My income is 4500 and I had a 200 refund check then I sudden owed the IRS 1400. I get about 25k in grants and 8k in loans last year. Tuition was 14k, housing 14k, so pretty much whatever money I get from the school is from loans. All my grants are used up. Now all of a sudden I owe the IRS money? Is this right?  <response>: Its probably because some of your grant money, the part used for housing, is taxable income. IRS Publication 970, chapter 1. 