The real question is : Is it taxable or not. See below to determine the answer.
Did you get a W-2 or
other reporting statement? Do you teach or do research in exchange for tuition?
According to the
IRS, a scholarship or fellowship is tax free to the extents it doesn’t
represent payment for teaching, research, or other services required as a
condition for receiving the scholarship. (But for exceptions, see Payment for
services in Publication 970).
However, 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
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
- Any fees, books, and supplies
or equipment that are not required for your courses
It doesn’t represent
payment for teaching, research, or other services required as a condition for
receiving the scholarship. (But for exceptions, see Payment for services in
Publication 970).
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.
