Hal_Al
Level 15

Education

Q. Re: Is a tuition waiver considered a scholarship?

A. Usually not, but it depends on how it is reported to you.

 

When done correctly, there is no tax document reporting (remission is simply a tax free employee discount).  That, is neither tuition or scholarship is shown in boxes 1 and 5 on your form 1098-T (typically you don't even get a 1098-T).  The remission/waiver should not be reported on your W-2 or a 1099-misc. 

 

If the school does report it as a scholarship (usually box 5 of the 1098-T), then you treat it as a restricted scholarship (must be used for tuition)  for tax purposes.