Frequently Asked Tax Questions And Answers
Keyword: Grants
4.8 Interest/Dividends/Other Types of Income: Grants, Scholarships, Student Loans, Work Study
I received an academic scholarship that is designated to be used
for tuition and books. Is this taxable?
Qualified scholarships and fellowships are treated as tax-free amounts if all of 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.
For additional information on Scholarship and Fellowship Grants, refer to Tax Topic 421, and Publication 970, Tax Benefits for Education.
References:
- Publication 970, Tax Benefits for Education
- Tax Topic 421, Scholarship and fellowship grants