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

Related Topics

Related Resources

State and Local Income Tax

Learn about state and local income tax with our articles from the tax experts at H&R Block.

Nontaxable Combat Pay

Learn more about combat pay exclusions and get tax answers at H&R Block.

Do I have to report Social Security disability income tax — SSDI Taxes?

Do you need to report your social security disability income on your tax return? Learn more from the tax experts at H&R Block.

Stock Options

Learn more about employee stock options and get tax answers at H&R Block.