Are my scholarships, fellowships, or grants taxable?

Congratulations on getting an award! Scholarships, fellowships, and Pell grants received by registered students who are working toward a degree at a college, university, or other accredited educational institution are generally nontaxable as long as the money is used entirely for qualified education expenses.

It's important to note that any amount awarded in excess of qualified education expenses will be considered taxable income. For example, a student awarded a $4,000 scholarship who had $3,000 in qualified education expenses would have $1,000 added to the "Wages, salaries, tips" line of their tax return. 

In addition, you can't claim education credits or deduct expenses that were paid with these tax-free funds.

Here's more info:

• How to report FAFSA money on your tax return
• Claiming Pell grant money