"I learned a long time ago from my very first tax class that everything is taxable per IRC Sec 61."

Wow, thanks. It's equally important to note that this was quoted in an earlier response where I once again pointed out there are specific exclusions, but otherwise, everything is considered taxable. Along with, everyone needs to note the Dates on these topics, because reportable income or not, deductible expense or not, and various qualifications, between State and Fed, are often changed. These grants are overlapping into a third year, and you cannot make the assumption that things in one year have carried on in that same condition to other years. Anything you read on the web must be read in perspective.