Scholarship and Fellowships

Some scholarships are nontaxable. But first, we'll those scholarships that are taxable.

A degree candidate will follow this same procedure of reporting any scholarship income spent for, or designated for, room and board. However, he does not need to report scholarship money spent for tuition, fees, and course-required books, supplies, and equipment. These amounts are excludable from gross income. The recipient is responsible for determining whether the grant from gross income. The recipient is responsible for determining whether the grant was used for qualified tuition and related expenses.