Question I received an academic scholarship that is designated for tuition and books. Is this taxable income? Answer The scholarship isn't taxable income if you satisfy all of the following conditions: You're a candidate for a degree at an eligible educational institution. You use it to pay for: tuition and fees required for enrollment or attendance at the eligible educational institution, and course-related expenses, such as fees, books, supplies, and equipment required for courses of instruction at the eligible educational institution. The amount received doesn't represent payment for your services, unless the amount you receive is for services required by: the National Health Service Corps Scholarship Program, the Armed Forces Health Professions Scholarship and Financial Assistance Program, or a comprehensive student work-learning-service program (as defined in section 448(e) of the Higher Education Act of 1965) operated by a work college (as defined in that section). Additional Information Tax Topic 421 - Scholarships, fellowship grants, and other grants Do I include my scholarship, fellowship, or education grant as income on my tax return? About Publication 970, Tax Benefits for Education Category Interest, dividends, other types of income Sub-Category Grants, scholarships, student loans, work study
