ED Releases New Guidance for CARES Act Emergency Relief Funds

IRS Releases Tax Guidance for HEERF Grants to Students

The Internal Revenue Service (IRS) has released tax guidance on HEERF emergency financial aid grants payments to students which can be found here. The IRS indicates that payments to students under the CARES Act are not considered income and are therefore not taxable. Since the grants are not taxable these grants cannot be claimed for any tax deduction or credit.

ED Releases HEERF Interim Reporting Guidance

The Department of Education (ED) released interim guidance on how to meet HEERF reporting requirements which can be found here. ED indicates that it will be providing instructions on how to report more detailed information to the Secretary in the near future. In the meantime, 30 days from the date of the institution’s Certification and Agreement to participate, HEERF participating institutions are instructed to report the following on the institution’s primary website:

1. An acknowledgement that the institution signed and returned to the Department the Certification and Agreement and the assurance that the institution has used, or intends to use, no less than 50% of the funds received from CARES Act funding to provide Emergency Financial Aid Grants to students.
2. The total amount of funds that the institution will receive or has received from the Department for Emergency Financial Aid Grants to Students.
3. The total amount of Emergency Financial Aid Grants distributed to students as of the date of submission.
4. The estimated total number of students at the institution eligible to participate in Title IV, HEA programs and are therefore eligible to receive Emergency Financial Aid Grants under HEERF.
5. The total number of students who have received an Emergency Financial Aid Grant to students under HEERF.
6. The method used to determine which students receive Emergency Financial Aid Grants and how much they would receive under HEERF.
7. Any instructions, directions, or guidance provided by the institution to students concerning the Emergency Financial Aid Grants.

Please continue to visit casfaa.org where we will continue to post these federal updates.