A portion of the financial assistance you receive may be considered as taxable income. The following guidelines apply to students who are working toward a degree.
To comply with the IRS requirements, you will need to determine the portion of your scholarship, grant, or fellowship assistance required to be included as taxable income on your tax return. You should keep receipts for all tuition, fees, books, supplies, and equipment required for your degree program. The difference between these costs and the amount of your scholarship, grant, or fellowship awards is the amount that must be included as taxable income.
Additional information regarding tax benefits applicable to the costs of higher education can be found in IRS Publication 970 (PDF).