Student grant and tax credit

softmind82

Hi,

I am thinking to take up one course and wondering if the student loan count towards the income ? and i have 2 kids and already taking child tax credit, and would it effect on the tax credit.

Grant website states that you would get grant plus the credit while you studying and need to know how does they calculate it and would it effect on tax credit etc.


Please advice.

Alice_Holt

"How does student support affect tax credits?

Student loan income is ignored when working out the amount of Child Tax Credit and Working Tax Credit you will get.

Some student grant income is ignored for Tax Credits, including:

• any amount for tuition fees
• a postgraduate maintenance grant
• certain bursaries (such as a health bursary or social work bursary)
• childcare grants
• a parents’ learning allowance.

If you don’t apply for student income, which you could claim, you can still be treated as if you have that money. This is called “notional income.”

From https://www.turn2us.org.uk/Benefit-guides/Student-Support/How-does-student-support-affect-tax-credits

softmind82

Alice_Holt wrote: »

"How does student support affect tax credits?

Student loan income is ignored when working out the amount of Child Tax Credit and Working Tax Credit you will get.

Some student grant income is ignored for Tax Credits, including:

• any amount for tuition fees
• a postgraduate maintenance grant
• certain bursaries (such as a health bursary or social work bursary)
• childcare grants
• a parents’ learning allowance.

If you don’t apply for student income, which you could claim, you can still be treated as if you have that money. This is called “notional income.”

From https://www.turn2us.org.uk/Benefit-guides/Student-Support/How-does-student-support-affect-tax-credits

Thanks for your quick reply Alice,

Just wanted to clarify that. As per my understanding student loan does not count as income and if i take childcare grant or parents allowance wont effect my child tax credit which i am already claiming.

Cheers

Darksparkle

The only student income that needs to be included is:

- Adult Dependants’ Grant paid to students with a partner or a dependent adult and
- dependants’ grants for students in Scotland