Question

Is work-study income taxable — Or is federal work-study tax exempt income if I’m a full-time student?

Answer

Since your work-study program income is a taxable scholarship, you must report the income on the wages line of Form 1040.

You don’t have to include in your income the part of any scholarship or fellowship that’s payment for teaching, research, or other services if you receive the amount under the:

  • National Health Service Corps Scholarship Program
  • Armed Forces Health Professions Scholarship and Financial Assistance Program

For scholarship, fellowship or federal work-study tax exempt status, you must also:

  • Be a degree candidate at an eligible educational institution
  • Use the part of the scholarship or fellowship you don’t include as income to pay qualified education expenses

Have other student tax filing questions?  Be sure to visit our Tax Guide for College Students and find out about student forms that can be filed for free.  

Related Topics

Related Resources

Obtaining An IRS Wage And Income Transcript

Do you need to get a copy of your wage and income transcript from the IRS? Learn more from the tax experts at H&R Block.

Report A Cash Gift On Taxes

How should you and your spouse report a joint cash gift on your taxes? Learn more from the tax experts at H&R Block.

Claiming Social Security Survivor Benefits

Do you have to include Social Security survivor benefits for your child on your taxes? Learn more from the tax experts at H&R Block.

Tax Implications of a Dividend

Learn more about taxes on dividends and how they may affect you when it comes time to file, with help from the tax pros at H&R Block.