A scholarship is usually an amount a student receives to help in the pursuit of studies. The student can be either:
Scholarship money can be any of these:
If you’re a degree-seeking student, don’t report scholarship money spent:
Qualified education expenses are:
You can't claim expenses for:
Partially Taxable Income
Scholarship money is taxable if used for these education expenses:
Report your taxable scholarship amount on one of these:
If you didn’t receive a Form W-2 listing the taxable amount, write “SCH” and the taxable amount on the dotted line to the left of line 7 or line 1.
Fully Taxable Income
If you're a non-degree student, include the full amount of your scholarship or fellowship in your taxable income. Do this:
Report the full amount of scholarship income on one of these:
Write “SCH” and the amount on the dotted line to the left of line 7 or line 1.
The full amount of the scholarship is also taxable if both of these apply:
If both apply, report the full amount of scholarship income on one of these:
To learn more, see these at www.irs.gov: