Grants, Scholarships, Student Loans, Work Study (2004 IRS FAQ)

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

Jump to: navigation, search

IRS FAQ 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:
  1. You are a candidate for a degree at an educational institution,
  2. 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
  3. The amounts received are not a payment for your services.

For additional information on Scholarship and Fellowship Grants, refer to Scholarship and Fellowship Grants, and Publication 970, Tax Benefits for Education .

References:

Source: IRS.gov

Personal tools