If you receive a scholarship or fellowship grant, all or part of
the amounts you receive may be tax-free.
Qualified scholarships and fellowship grants are treated as tax-free
amounts if all the following conditions are met:
- You are a candidate for a degree at an educational institution,
- Amounts you receive as a scholarship or fellowship are used for
tuition and fees required for enrollment or attendance at the educational
institution, or for books, supplies, and equipment required for courses
of instruction; and
- The amounts received are not a payment for your services.
Included in gross income are amounts used for incidental expenses,
such as room and board, travel, and non-required equipment, as well as
amounts received as payments for teaching, research, or other services
required as a condition for receiving the scholarship or fellowship grant.
If any part of your scholarship or fellowship grant is taxable, you
may have to make estimated tax payments. Select Topic
355 for information about estimated tax.
See Publication 520,
Scholarships and Fellowships, and Publication
970, Tax Benefits for Higher Education, for further information.
Publications and forms may be downloaded
from this site or ordered by calling 1-800-829-3676.
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