Why is my scholarship taxable? - Intuit Turbo Real Money Talk

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes

Pick a language

Showing results for 
Search instead for 
Did you mean: 
,Created with Sketch.706 helpful votes

Why is my scholarship taxable?

Congratulations on getting a scholarship! Scholarships or portions of scholarships may be taxable. It all depends on how you use them.

If you use your scholarship to pay for any of these, it counts as income and the amount paid is taxable:

  • Room and board
  • Travel and incidental expenses
  • Any fees, books, and supplies or equipment that are not required for your courses

If you’re getting a degree at an eligible school, your scholarship is tax-free when used for:

  • Tuition and fees
  • Fees, books, supplies or equipment required for your courses
  • Any scholarship or fellowship for services received under the National Health Services Corps Scholarship Program or the Armed Forces Health Professions Scholarship and Financial Assistance Program

For example, if you used your scholarship to pay for tuition and room and board, you would be taxed on the room and board payment but not tuition.

Was this helpful?

You must sign in to vote, reply, or post
Intuit TurboTax - Finish filing and get your maximum refund, guaranteed.

Ready to Try TurboTax?

Returning? Sign in