Taxable Financial Aid

Do I have to report any grants, scholarships, or fellowships to the IRS as income?


Part or all of a grant, scholarship, or fellowship may be taxable even if you do not receive a W-2 form. If you are in a degree program, amounts you use for expenses other than tuition and course-related expenses (e.g. amounts used for housing, meals, and travel) are taxable. To determine this taxable amount, add up all grants, scholarships, and fellowships received in a calendar year, then subtract all tuition, fees, and book and supply expenses. If the remaining amount is a positive number, it may have to be reported as income. Any taxed grant/scholarship/fellowship income must also be reported on your Free Application for Federal Student Aid (FAFSA). If you are not in a degree-seeking program, the full amount of grant, scholarship, or fellowship is taxable.

Contact the Internal Revenue Service for more detailed information. IRS Publication 970 also provides more information on tax benefits for education.

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Details

Article ID: 7827
Created
Tue 4/19/22 12:45 PM
Modified
Thu 7/27/23 3:12 PM