TurboTax HelpTurboTax HelpIntuit

Are my scholarships, fellowships, or grants taxable?

SOLVEDby TurboTax921Updated December 30, 2021

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:

Was this helpful?

You must sign in to vote, reply, or post
TurboTax Desktop BasicTurboTax Desktop BusinessTurboTax Desktop DeluxeTurboTax Desktop Home and BusinessTurboTax Desktop PremierTurboTax Live BasicTurboTax Live DeluxeTurboTax Live Full Service BasicTurboTax Live Full Service Complex IncomeTurboTax Live Full Service Complex Self-EmployedTurboTax Live Full Service DeluxeTurboTax Live Full Service PremierTurboTax Live Full Service Self-employedTurboTax Live PremierTurboTax Live Self-employedTurboTax Mobile Apps DeluxeTurboTax Mobile Apps FreeTurboTax Mobile Apps PremierTurboTax Mobile Apps Self-employedTurboTax Online DeluxeTurboTax Online FreeTurboTax Online PremierTurboTax Online Self-employed
Dynamic AdsDynamic Ads