I received a 1098-T. Why is it reducing my refund? I thought scholarships were not taxable income.


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I also got a little confused by this section, especially when my estimated amount started getting into the thousands.

It seems like the answer is, in a nutshell (if you're a grad student with an assistantship/fellowship): any money they give you that actually becomes yours to spend is taxable, any money that they "give" you as a tuition waiver is not taxable.

I was afraid that I was being dishonestly optimistic in thinking this way until I found IRS Publication 970 (http://www.irs.gov/pub/irs-pdf/p970.pdf). The relevant info is at the top of page 8, under Graduate Education. It's pretty simple and unequivocal, as far as I can tell.
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