AICPA Letter Supports the Tax-Free Pell Grant Act

The AICPA endorses the Tax-Free Pell Grant Act because it helps simplify unnecessarily complex education-related tax provisions. The legislation would exclude Pell Grants from being included in an individual’s income, which would simplify the calculation for determining an individual’s available American Opportunity Tax Credit and would not penalize students for using Pell Grant funds for necessary living expenses. Although there are many steps to further harmonize and simplify our education-related tax provisions, the Tax-Free Pell Grant Act would provide needed relief for millions of students.