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