If you receive scholarships, grants, and/or fellowships that exceed your costs of tuition and mandatory fees, books, supplies, and equipment required for courses, you are required to report the excess funds as taxable income.
If your scholarships and grants cover both tuition and room & meal plan, the amount you use for tuition is tax-free, while the amount you use for room & meal plan is taxable. More information on what to include vs. exclude within taxable income can be found within the resources linked below. Scholarship and fellowship recipients should retain fee statements and similar records to support their calculations of the non-taxable and taxable portions of their aid offers.
If you have additional questions, please refer to the IRS for additional clarification.
- Do I include my scholarship, fellowship, or education grant as income on my tax return?
- Publication 970, Tax Benefits for Education
Congratulations on the achievement qualifying you for this prize or award. Your prize may be includable in your gross income for federal tax purposes. It will be reported to you and the IRS on Form 1099-MISC if the combined dollar amount of 1099-MISC reportable income from the University of Puget Sound is $600 or more in a calendar year. The university issues 1099-MISC tax forms in January following the applicable calendar year.
In general, prizes are reported as income on your federal income tax return. Please consult with your tax professional about where to report this and all other tax implications of this income on the tax form that you file.
You may find the following IRS publication helpful:
- Publication 525, Taxable and Nontaxable Income
This publication may be downloaded from the IRS Forms and Publications Web site.
If you have questions about the information provide above, please contact Office of Finance at finance@pugetsound.edu or on campus extension 2732.
Congratulations on the achievement qualifying you for this prize or award. Your prize may be subject to United States (federal) income tax. This will depend, in part, upon the existence or absence of a tax treaty between your home country (the country where you hold citizenship) and the United States.
If your prize is exempt from United States income tax under a tax treaty, you will need to make sure that you have filed the proper IRS exemption form with the university. If you do not file the exemption form, the university may be required to withhold (deduct) United States (federal) income tax from your prize.
If you have questions about the information provide above, please contact Office of Finance at finance@pugetsound.edu or on campus extension 2732.