Hello,
I am writing because I have a scholarship and stipend from HRSA (a federal program) under the Nurse Corps program. I know the stipend is considered taxable income in NJ, but my question is: is the scholarship (all of which goes directly to pay tuition and fees at the school I am attending) considered income I need to report in NJ? I ask because the IRS has determined that the scholarship is income for federal tax purposes (although a similar scholarship program for physicians is not federal taxable income). Should I follow the general NJ rule that scholarships are not income? Or should I follow the IRS ruling (that is only specific to federal income taxes)?
