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Taxes for Grads: Do Scholarships Count as Taxable Income?

College scholarships provide significant help to students. But, do scholarships count as taxable income? It depends on how they’re used.

Are scholarships taxable?

When are scholarships not taxed, what are qualified educational expenses, when are scholarships considered taxable income, taxable scholarship funds, taxable stipend scholarships, scholarships vs. grants, what tax credits are available to pay for higher education, american opportunity credit, lifetime learning credit, how to maximize your scholarships and tax credits, tax deduction for student loan interest, how can i avoid paying taxes on scholarships.

Key Takeaways

Scholarships that pay for qualified educational expenses at qualified educational institutions generally don’t count as taxable income.
Scholarships are tax-free only if the student is a degree-seeking candidate, attends a qualified educational institution, and the funds are used for qualified education expenses.
Scholarship funds received in excess of your qualified educational expenses may be taxable and might need to be reported in your taxable income.

Typically, scholarships that pay for qualified educational costs at eligible educational institutions aren’t considered taxable income. The same applies to grants received to pay for specific schooling costs. In short, whether scholarships are taxable depends on how much you receive and how you spend the funds. In fact, some scholarships can be at least partially taxable.

The IRS has specific conditions for a scholarship not to be taxed. A scholarship is tax-free only if:

You are a degree-seeking candidate
Attend a qualified educational institution
It doesn’t exceed your qualified education expenses
It isn’t designated for other non-qualified purposes (such as room and board)
It doesn’t represent payment for work or services you’ve performed

The IRS defines a candidate for a degree as someone who either attends primary or secondary school (K-12) or attends college to pursue a degree. Or you can attend an educational institution that:

Provides a program which can be used as full and acceptable course credit toward a bachelor's or higher degree, or offers a training preparation program for students seeking gainful employment in a recognized occupation; and
Has received a nationally recognized accreditation status and is authorized under federal or state law to provide a program of study.

To avoid a scholarship being subject to taxation, you’ll need to spend the funds on qualified educational expenses. Generally, this means tuition and fees required to enroll or attend the eligible educational institution. But it can also include costs such as course-related expenses like fees, books, supplies, and equipment required for courses at the institution.

The key requirement for having scholarships cover these course-related expenses tax-free, is that they must be required of all students in your course. They can’t be optional expenses you elect to pay that aren’t required to satisfy the requirements of the course or educational institution.

You might have some of your scholarship or grant count as taxable income under certain circumstances.

Some scholarship funds are subject to taxation . If you have scholarship money left over after covering your qualified education expenses, you'll need to include that amount as part of your gross taxable income. That means scholarship money counts as income when calculating your tax liability when used to pay for:

Room or board
And other non-qualified expenses (including school supplies not listed as required in your program).

If you have money left over after covering your qualified education expenses and use it on other costs, these funds generally count as taxable income. For example, if you use your scholarship funds for optional reading assignments that don’t go toward satisfying course requirements and aren’t required of every student, they would be subject to taxation.

In some cases, a scholarship is really more of a stipend, providing compensation for services while you’re in school or for services you’ll provide in the future. If, for example:

You receive a $5,000 scholarship with $1,500 of it designated to pay for your teaching services.
The $1,500 typically counts toward your taxable income for the year.
The remaining $3,500 is usually not taxable, as long as you're a degree student at a qualifying institution and the money is used for qualified education expenses.

If you receive a scholarship with the condition that you provide services in the future, you’ll typically need to count the scholarship as income in the year you receive it. Payment for services at a military academy also counts toward your taxable income.

If you receive scholarship funds that exceed your qualifying educational expenses, the amount above these necessary costs is subject to taxation. Likewise, if you receive a scholarship that you use to pay for room and board, books or supplies that aren't required, these funds are generally subject to taxation. Commonly, schools offer scholarships to worthy students, essentially counting as a reduction in the cost of attendance rather than funds given from a third-party.

Scholarships are financial awards often given to students who meet certain need-based criteria or merit-based achievements based on their academic, athletic or extracurricular performance, or on other areas of interest like field of study, hobbies and more. Scholarships aren't like student loans, meaning they don't need to be repaid.

Grants are a form of financial aid that don’t require repayment. Generally, grants are awarded based solely on financial need. One common example is the Pell Grant, which is awarded solely on the difference between the expected cost and family contribution amounts.

Depending on how the student uses scholarship funds, they are typically not considered taxable income. Grants are usually awarded by federal and state governments and are generally not taxable if used for paying qualified expenses to attend an eligible educational institution while pursuing a degree.

TurboTax Tip: Tax credits such as the American Opportunity Credit and the Lifetime Learning Credit can be used to reduce the cost of pursuing post-secondary education.

Scholarships and grants aren’t the only ways to get financial assistance to pay for higher education. The tax code also has two educational tax credits geared toward lowering the cost of pursuing post-secondary education.

The American Opportunity Credit allows students or their parents an opportunity to reduce the cost of attending college through claiming qualifying education expenses as a tax credit on their federal income taxes. The credit reduces the tax you owe on a dollar-for-dollar basis rather than just reducing the amount of income subject to tax as a deduction would.

To claim this education tax credit , the student must be at least a half-time student who hasn’t completed the first four years of college and is working toward a degree. In addition to required tuition and fees, the credit applies to other expenses like books, supplies and equipment, but not room, board, transportation expenses or medical insurance. The credit is equal to 100% of the first $2,000 of qualifying expenses plus 25% of the expenses in excess of $2,000. The maximum credit per student per year is $2,500.

Whether you’re pursuing a college degree, higher education coursework independent of a degree or other educational activities to develop your career, another tax credit to consider is the Lifetime Learning Credit . Like the American Opportunity Credit, this credit also reduces your tax bill on a dollar-for-dollar basis for a portion of the tuition, fees and other qualifying expenses you pay for yourself, your spouse or a dependent to enroll in qualifying coursework. However, this credit doesn’t require you or your dependent to be taking this coursework to satisfy the requirements of a degree.

The Lifetime Learning Credit is equal to 20% of the first $10,000 of spending for a maximum of $2,000.

Another distinction is that you can’t double dip with these two educational credits. That means you can’t claim both the Lifetime Learning Credit and the American Opportunity Credit in the same year for the same student. You need to choose between them.

The American Opportunity Credit is available for each qualifying person on a tax return, while only one Lifetime Learning Credit can be claimed on each tax return.

The IRS has provided some helpful guidance on how to maximize your scholarships and tax credits, delivering you the most savings possible for your situation. One tax optimization strategy works by considering some of your scholarship money as taxable income by using it for living expenses rather than applying it toward your tuition expenses. This can allow for some of your tuition expenses to be eligible for an education credit that otherwise would have been paid by the tax-free scholarship money. In some cases, you might be better off excluding all of the scholarship from your taxable income by applying it only toward tuition expenses. In others, it might make sense to claim some as taxable income and use the tax credits to lower your tax bill.

For example, if you have a grant or scholarship that fully covers all of your tuition, fees, and books, then you can't claim the American Opportunity Credit because you didn't actually pay for qualifying expenses. If, instead, you claim some of the grant or scholarship as income and don’t use it for your eligible expenses, this then leaves you with some qualified expenses to pay and gives you the ability to claim the tax credit. Since up to $1,000 of the American Opportunity Credit is refundable, you can take part of a scholarship and choose to make it taxable income. Then, you can have part of the American Opportunity Credit pay the tax and receive up to $1,000 as a refund without ever having paid any taxes.

Another useful tax deduction you may be able to claim comes from the student loan interest deduction. If you used student loans to finance all or part of your college education, the tax code provides the ability for many borrowers to deduct the interest paid on these student loans.

For 2023, you can deduct the student loan interest paid if your modified adjusted gross income (MAGI) is below $90,000 as a single filer or $185,000 if you file a joint return. The ability to claim the deduction begins to phase out at $75,000 for single filers and $155,000 for joint filers.

For scholarships to be completely tax-free, the money you receive has to go toward paying qualified educational expenses at qualified educational institutions. In some cases, scholarship funds can exceed this amount. Scholarship funds that go toward certain non-qualified expenses like room and board are typically taxable income.

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The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.

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Are scholarships taxable? Are grants taxable?

Receiving a college scholarship or grant can making paying for college a lot easier and help with your overall budget. But what about your taxes? OK, we know it’s probably not the first thing on your mind. But as tax time rolls around, you may be asking yourself, “Are scholarships taxable? Are grants taxable?”

Are scholarships taxable - graduation cap on money

The good news is that your scholarship and grant are not taxable if the money was for study or research for a degree-seeking student who spent the funds to pay qualified expenses at an eligible educational organization.

Let’s dig into exactly what that means with a few definitions:

A degree-seeking student is one:

Pursuing studies for an associate, bachelor’s, or higher degree at an eligible educational institute,
Enrolled in a program accepted for full credit toward a bachelor’s or higher degree,
Pursuing studies or conducting research to meet the requirements for a professional certification in a recognized occupation, OR
Enrolled in a program accredited by a national recognized accreditation agency and authorized under federal or state law.

An eligible educational organization is one:

Whose primary function is the presentation of formal instruction,
That maintains a regular faculty and curriculum, and
Has a regularly enrolled body of students

Qualified education expenses include:

Tuition and fees required to enroll at or attend an eligible educational institution
Course-related expenses required of all students in your course of instruction. Expenses include fees, books, supplies and equipment (e.g. computers).

Have other student tax filing questions? Be sure to visit our Tax Guide for College Students and find out about student forms that can be filed for free.

Are scholarships taxable income?

If all the above describes your situation, you won’t need to report your grant or scholarship as taxable income on your return.

If that’s not you exactly, then you may find that some or all your award is taxable. Here are a few scenarios where that might apply.

Scholarship or grant income is taxable in the following situations.:

Amounts received for incidental expenses such as room and board, travel, and optional equipment
Amounts for payments for services including teaching, researching, or other services required as a condition of receiving the scholarship

However, National Health Services Corps Scholarships and Armed Forces Health Professions Scholarship and Financial Assistance Program payments, or certain student work-learning service programs aren’t taxable.

Do you have to pay taxes on grants?

Some grants are treated the same as a tax-free scholarship, and the amounts you use to pay for qualified education expenses are tax free.

These include:

Fulbright Grants
Pell Grants
Other Title IV need-based education grants

If you’ve received one of the grants mentioned above and used the money appropriately, the grant money is not taxable.

What about student loans? Any loans you take out to pay for education expenses are tax free, too. Since its money you’ll need to pay back, the amount isn’t included in income. If you’re currently paying back your student loans, you may qualify for the student loan interest deduction .

Get help with your taxable scholarships and grants

If it turns out your scholarships and grants are taxable, don’t worry about getting your taxes done right. At H&R Block, you can find the expertise you need. Whether you file on your own with H&R Block Online or with a tax pro . We’ll be there with you every step of the way.

Free tax filing for students – Did you know some students can file for free with H&R Block? It’s true! Learn more who can file for free with H&R Block Free Online .

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PhD & MFA: Tax Information

Important note: The following contains general tax information for graduate students. It is not meant to replace the advice of a tax professional or assumed to be error-free. For specific questions about your tax responsibilities, please contact the Internal Revenue Service, an accountant, or an income tax service.

Is my stipend taxable?

Being a student does not automatically exempt you from having to pay taxes. All of your earnings are subject to both federal and state income taxes. Generally, any scholarship, grant, or fellowship dollars used to pay housing, food, or living expenses are taxable. All stipend payments (service and non-service) must be reported to the U.S Internal Revenue Service (IRS) by both domestic and international students, regardless of whether you received a tax statement from the University. Your tax liability will be determined by the IRS when you file your tax return. If you had taxes withheld by the University, the withholdings will reduce the amount you owe to the IRS and may increase your refund if you are eligible for one.

Why did the University withhold taxes?

There is a difference between tax liability and tax withholdings . Having taxes withheld does not mean that your stipend was reduced. For a complete breakdown of your earnings, taxation, and deductions, please refer to the descriptions and amounts on your salary statement . The University may withhold taxes on your earnings and pay it to the U.S Internal Revenue Service (IRS) on your behalf, per IRS guidelines. If this is the case, you will receive a tax statement (W-2, 1042-S, or 1099) at the beginning of the next calendar year. More information regarding these statements can be found in the questions below.

Why did I have more taxes withheld than expected?

Students who received a bulk payment (“back pay”), which consists of multiple weeks of payments combined into one check may have more taxes withheld than expected. There are many reasons why students could receive a bulk payment, for example when a student’s job was set up in the University’s Student Employment System after they had already started working.

Each time you are paid, in accordance with tax regulations, your earnings are projected across a 52-week period to project what your earnings would be for a year. That total is then used to determine where your income would fall into the overall tax table to determine the rate at which you should be taxed. Since your earnings in the week’s pay were greater than the amount you received previously, your earnings projected into a higher tax bracket which means a higher percentage of tax was withheld. When students file their taxes the next calendar year, it is possible to receive a portion of these earnings back.

If you work during the summer, you will also have Social Security and Medicare taxes (also known as FICA) withheld from your paychecks (please refer to “What is FICA” below).

How do I change my withholdings?

If you provide service to the University (as a teaching fellow, research fellow, grader, or graduate assistant) your tax withholdings can be adjusted by updating your federal and state tax withholding certificates (W-4 and M-4 forms respectively), depending on your student status.

Domestic students are able to update their federal (W-4) and state (M-4, specifically Massachusetts) tax withholding certificates through the BUworks Central Portal. Instructions can be found on the Student Employment Website .

International students should also refer to the information provided by the Student Employment Office .

If you receive a non-service stipend , the University does not withhold taxes for U.S. citizens & permanent residents. International students have 14% withheld in taxes. This rate cannot be changed unless the student can claim a tax treaty exemption . International students with questions about their tax withholdings should contact the Payroll Office at [email protected] .

What is FICA?

The Federal Insurance Contributions Act (FICA) mandates a mandatory payroll tax to fund Social Security and Medicare . During the academic year, students who are enrolled at least half-time or certified full-time and who are working on campus are exempt from FICA (Social Security and Medicare) deductions. FICA is withheld from all students working on campus during the summer; however, they may qualify for a FICA Rebate based on their summer registration status. The rebate is usually issued in October.

Will I receive a tax form for my stipend (W-2, 1042-S)?

If you provide service to the University (ex: teaching fellowship, research fellowship, gradership, or graduate assistantship) you receive a salary in exchange. Service stipends are considered earned income for tax purposes and the University will withhold and report the earnings per IRS guidelines based on your W-4 selections. You will receive form W-2.

Non-service stipends are funds used to support a student in their course of study (ex: dean’s fellowship, dissertation fellowship, NIH/NSF trainee fellowship, graduate research abroad fellowship, as well as miscellaneous awards, prizes, and reimbursements) and they are not paid in exchange for any service to the University. The IRS considers these payments to be taxable income and you are responsible to report them on your tax return, regardless of your citizenship. The University does not withhold taxes for U.S. citizens & permanent residents, and they will not receive a tax withholding statement from BU. International students have 14% withheld in taxes and will receive form 1042-S, unless they can claim tax treaty exemption . International students with questions about tax withholdings should contact [email protected] .

What kind of tax documents could I receive?

Depending on the aid and the type of fellowship a student had during the previous calendar year, students may receive one of the following tax documents:

W-2 : All students who received a salary for services rendered and who were paid through the University’s Student Employment System will receive a W-2. Examples include a teaching fellowship or research fellowship: https://www.bu.edu/seo/students/getting-paid/taxes/w-2/ .
International students receive a 1042-S because the university withheld taxes.
Domestic students do not receive any tax document for non-service stipends because the University did not withhold taxes.
1099 : A 1099 is used to report miscellaneous payments made to non-employee individuals for services rendered.
Please note that the 1098-T is a tuition statement that’s used during tax preparation to see if the student qualifies for an education credit to lessen their tax burden. All students receive them. See: https://www.irs.gov/forms-pubs/about-form-1098-t .
There are potentially many reasons for a discrepancy between the statement and what you see in the student link. The amount in Box 1 only represents amounts paid for Qualified Tuition and Related Expenses (QTRE) and does not include payments made for room and board, insurance, health service fees, or parking which, though important, are not considered mandatory education expenses for tax purposes.
Form 1098-T reports amounts that the student paid in a certain year, and the pay date does not necessarily correspond to the dates that the classes were attended. For example, tuition for the Spring semester is typically billed in November so a student may have paid tuition for the Spring semester in 2020 despite the fact that classes didn’t start until 2021. The best and most accurate source of information about the amounts that you paid for qualified tuition and related expenses will be your student link.

How do I report my non-service stipend?

Citizens, Permanent Residents, and Resident Aliens for U.S. Tax Purposes

Non-stipends are treated as taxable scholarships for tax purposes. Per IRS Publication 970 , taxable scholarships and fellowships should be reported on the tax return as follows:

Form 1040 – Line 1; also enter “SCH” and the taxable amount in the space to the left of line 1.
When using tax software to prepare your tax return, be sure to classify the income as taxable scholarship income. Other terminology that software providers may use to describe this income includes nonqualified scholarships, taxable fellowships, nonqualified fellowships, taxable grant income, and other similar phrases. This type of income is often difficult to find in the software because it is uncommon.
Do not instruct the software that your stipend is substitute W-2 or substitute 1099 income. Those types of income are taxed differently than taxable scholarship income and could cost you much more in tax.
When engaging a professional tax preparer to prepare your return, be sure s/he is aware that this is taxable scholarship income. Tax preparers are just like everyone else; they can’t know everything, and there is a good chance they have never seen this type of income either.

Nonresident-Aliens for US Tax Purposes

Stipends reported to you on a Form 1042-S with income code 16 in box 1 are taxable scholarships. Per IRS Publication 519 , gross income from box 1 should be reported on Form 1040-NR line 1b. Federal tax withheld from box 7 should be reported on Form 1040-NR line 25G.

How do I request a duplicate W-2?

To request a duplicate W-2, please follow the instruction on the Student Employment Website .

How do I request a duplicate 1042-S?

To request a duplicate 1042-S, please follow the instruction on the Student Employment Website .

I have a tax question. Whom can I ask?

In preparing a personal income tax return, fellowship recipients should consult with a professional tax preparer or advisor. Boston University staff are not permitted or qualified to provide tax advice. Recipients may, however, find it helpful to read the IRS publication relevant to their personal situation:

IRS Pub 970, Tax Benefits for Education
IRS Pub 519, U.S. Tax Guide for Aliens
Federal income tax forms and publications can be downloaded from the IRS website
Massachusetts income tax forms and publications can be downloaded from the Massachusetts Department of Revenue (DOR) website
IRS Guidance: Withholding Federal Income Tax on Scholarships, Fellowships, and Grants Paid to Aliens
Federal: Internal Revenue Service 1-800-829-1040
State: Massachusetts Department of Revenue 1-800-392-6089; to request an in-person or virtual appointment, call 617-887-6367

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Personal Finance for PhDs

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Do I Owe Income Tax on My Fellowship?

February 19, 2019 by Emily

Postbac, graduate student, and postdoc fellows frequently ask whether their fellowships are considered taxable income. PhD-type fellowships that are not reported on a W-2 are non-compensatory income. They might be reported on a 1098-T in Box 5, on a 1099-MISC in Box 3, or on a courtesy letter or not reported at all, which accounts for the widespread confusion. Publication 970 answers the question of when a fellowship can be considered tax-free. Fellowships are considered part of the recipient’s taxable income unless they go toward paying qualified education expenses (students only).

Links Mentioned in the Episode

Publication 970

Welcome to the Personal Finance for PhDs Podcast – a higher education in personal finance. I’m your host, Emily Roberts.

I’m doing something a little bit different in this special bonus episode for Season 2.

I’m using it to answer a frequently asked question that I receive about taxes. The question is: Do I owe income tax on my fellowship?

In this episode, I’m speaking to citizens and residents in the United States. And I’m also talking about PhD-type fellowships whether at the postbac level, the graduate student level, or the postdoc level.

What’s going on with these fellowships that makes the recipient question whether or not they are taxable is that they are not reported on a W-2. They might not be reported at all, or they may be reported on a 1098-T in Box 5, on a 1099-MISC in Box 3, or on a courtesy letter, which is not an official tax form but rather just a letter that states what the amount of the fellowship was in that calendar year.

Fellowship income is considered part of your taxable income. Now, you may not actually end up paying tax on your fellowship income depending on the rest of your return, like the deductions and credits you’re going to be able to take, but it is considered part of that taxable income.

Now, I know you’re not inclined to just believe me right off the bat. I mean, there’s a strong incentive for you to believe that your fellowship income is not taxable, so I’m going to give you a bit of evidence here.

IRS Publication 970 is the definitive publication on the taxability of fellowship and scholarship income. I’ll read you a few excerpts from Chapter 1 of Publication 970 .

First, some definitions:

A scholarship is generally an amount paid or allowed to, or for the benefit of, a student (whether an undergraduate or a graduate) at an educational institution to aid in the pursuit of his or her studies. A fellowship grant is generally an amount paid for the benefit of an individual to aid in the pursuit of study or research.

So you can see that fellowship grants are much more broad; they can be issued to non-students, whereas scholarships only go to students.

Chapter 1 of Publication 970 approaches fellowships and scholarships from the perspective of trying to make them tax-free.

So let’s see how that can happen:

A scholarship or fellowship grant is tax free (excludable from gross income) only if you are a candidate for a degree at an eligible educational institution.

So right off the bat we know that anybody who is receiving a fellowship who is not a student cannot make their fellowship tax-free, i.e., it is part of their taxable income.

Additionally:

A scholarship or fellowship grant is tax free only to the extent: It doesn’t exceed your qualified education expenses…

So now we’re just dealing with the graduate student population that has the potential to make a scholarship or fellowship grant tax-free.

The way that we use the terms ‘scholarship’ and ‘fellowship’ in academia, a ‘fellowship’ generally refers to the money that you take home for your living expenses, whereas ‘scholarship’ is the money that goes towards paying your tuition and fees, the qualified education expenses.

Very roughly speaking, your qualified education expenses can make your scholarships tax-free if you’re a fully funded graduate student, but there’s no more qualified education expenses to start making your fellowship income tax-free. Therefore, again, roughly, your fellowship income is included in your taxable income.

So to summarize, fellowship and scholarship income that goes towards paying our qualified education expenses like tuition and fees can be made tax-free, but fellowship and scholarship income that goes towards paying other kinds of expenses like your living expenses can’t be made tax-free.

Now, I’m glossing over some very important details on how you actually calculate your taxable income, so if you want more information about that, please see the tax center on my website, pfforphds.com/tax .

But, there you go, roughly speaking, fellowship income does need to be included in your taxable income, whether you are a postbac, a graduate student, or a postdoc.

Thanks for joining me in this short bonus episode!

Please share this episode on social media and with your peers because this is a message that they need to hear. It’s not a message that they want to hear, but it’s a message that they need to hear to stay on the right side of the IRS.

Show notes for this episode can be found at pfforphds.com/s2be1 .

Thanks for joining me today, and I’ll see you in the next episode!

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Reader Interactions

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Do I Owe Income Tax on My Fellowship? – Personal Finance for PhDs

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Tax Considerations for Graduate Students

If you have questions, email the Graduate School .

Graduate student employees (Assistant Instructors or Teaching Assistants) receive the Tuition Reduction Benefit as part of their compensation. For Graduate Research Assistants, the Tuition Reduction Benefit can be up to the full resident tuition bill depending on grant funds available.

As you prepare to submit your income taxes, make note that Tuition Reduction Benefits are tax-exempt. 100% of the benefit is applied to the tuition bill. No payments are made to students.

Need Tax Assistance?

Prosper tax centers.

Prosper Tax Centers are a program of Foundation Communities, a nonprofit organization that empowers low-income individuals and families (including students) with the tools they need to succeed.

The criteria for clients of the Prosper Tax Centers is that total household income does not exceed $85,000 with dependents or $60,000 if filing as an individual. Students need to bring their W-2 forms, Social Security Card (if applicable), drivers license/ID and their tuition and financial aid information (1098T or 1098 official forms). Locate a tax center near you.

Austin Public Library

The Austin Public Library also offers assistance with taxes on a first-come, first served basis.

Tax Help for International Students

Contact the international office for tax assistance., tax seminar for graduate students, review the presentation materials from the 2019 tax seminar., quick links.

IRS Information Related to Scholarship and Fellowship Grants
IRS Information on Taxes Related to Tax Benefits for Education
IRS Educational Tax Credits & Deductions
Tax "Cheat Sheet" for PhD Students - 2019
Tax "Cheat Sheet" for PostDocs - 2019

Tax Information for Fellows

Fellowship and award recipients must pay tax on the stipends that they receive to cover living and general expenses but may deduct certain educational expenses. Amounts awarded in payment of tuition are not taxable for fellows. Taxes are not withheld from stipends disbursed through student financial aid, so students may choose to file an estimated tax payment.

For domestic students, stipends are disbursed through the Office of Student Financial Aid.

For most international students, stipends will be disbursed through the University Human Resources payroll system. Taxes will be automatically withheld. To apply for a tax refund, students must file a federal and state tax return for the year in which the fellowship was received.

Please refer to the Internal Revenue Service Publication 970, Benefits for Education, for more information regarding the tax status of fellowship and scholarship stipends. Students may also call 1-800-829-1040 or visit www.irs.gov .

Tax Preparation Assistance

Each year, the Graduate School provides free assistance with preparing tax returns to all UMD graduate students. During March and early April, students can schedule a time to consult with Terptax.org .

International graduate students may have access to use Glacier Tax Prep which is an online tax preparation service that helps students classified as nonresident aliens prepare their federal tax returns. For more information about Glacier Tax Prep, please visit the International Student and Scholars Services website here .

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TAX INFORMATION FOR GRADUATE STUDENTS AT USC

General tax information for students is available on the Student Financial Services website. USC staff cannot provide tax advice and we strongly advise students to contact the Internal Revenue Service (IRS), and/or consult with a tax professional regarding taxes.

International students may wish to consult the Office of International Students (OIS) website which offers information about tax exemptions, tax related forms, and access to Sprintax , a tax preparation software.

Graduate Students Supported by Fellowships

The Internal Revenue Service (IRS) provides information regarding the tax treatment of fellowship awards. The IRS also provides information regarding the 1098-t form . Some education related items that are included in your fellowship may not be taxable, for example tuition remission. Other items, such as living expenses including room and board, transportation and entertainment are generally considered taxable.

While receiving a fellowship, domestic students will not receive a W-2 form. However, according to the IRS, you must report all taxable amounts whether or not you received a Form W-2. If you have taxable income from your fellowship, you may need to make estimated tax payments. For more information, see Pub. 505 , Tax Withholding and Estimated Tax and the IRS help on estimated taxes .

International students (non-resident aliens for tax purposes) on fellowship receive their stipends through University Payroll Services. The stipend may be treated as taxable income by the IRS. Therefore, the university may be obligated to withhold income taxes. The amount of this tax withholding depends upon the individual circumstances of the student, including the student’s total stipend and the status of the tax treaty of their home tax residence country. Tuition remission provided to an international student on fellowship is not taxable.

Graduate Students Supported by Teaching and Research Assistantships

The stipends provided via the University Payroll Services to domestic and international students who are serving as TA’s, RA’s, and AL’s are treated as taxable income by the Internal Revenue Service. Therefore, the university may be obligated to report the income and withhold income taxes. The amount of this tax withholding depends upon the individual circumstances of the student, including total stipend, the instructions provided by the student on Form W-4, and, if an international student, the status of the tax treaty of their home tax residence country and Form 8233. Tuition remission provided to a TA, RA, or AL is not reportable or taxable.

Students Hired as Graduate Student Workers (Hourly)

The payment that domestic and international students receive as hourly graduate student workers is treated as taxable income by the Internal Revenue Service. The amount of this tax withholding depends upon the individual circumstances of the student, including total amount paid per pay period, the instructions provided by the student on Form W-4, and, if an international student, the status of the tax treaty of their tax residence country and the completion of IRS Form 8233.

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Is my scholarship taxable?

Use this interactive decision tool to determine if your non-government scholarship is taxable.

Last updated 29 June 2023

Go to the tool

Our tool will take between 2 and 10 minutes to use.

What you can do with this tool

The tool results are based on the information you provide. You should use these results for guidance purposes only.

If your scholarship is taxable:

you should advise your scholarship provider that your scholarship is assessable income for tax purposes – they may need to withhold tax from your periodic payments depending on the information you provide on your tax file number declaration and the amount paid to you (talk to your scholarship provider about this)
you need to show your scholarship amount as assessable income in your tax return.

If your scholarship is not taxable:

you should advise your scholarship provider that your scholarship is exempt income – they do not need to withhold tax from your periodic payments
you should not show your scholarship as assessable income in your tax return.

Limitations

This tool does not deal with Commonwealth education or training payments such as:

Assistance for Isolated Children
Youth Allowance.

These payments are not scholarships. However, some of them may be exempt from tax under other provisions of the income tax law.

Some scholarships, bursaries, grants and awards – including education benefits provided under a friendly society scholarship plan – are taxable. If you are not sure about a payment contact the organisation that paid you.

What else you can do

Find out more about scholarship payments and which ones are subject to tax.

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Line 13010 – Taxable scholarships, fellowships, bursaries, and artists' project grants

Report amounts that you received as a scholarship, fellowship or bursary, or a prize for achievement in a field of endeavour ordinarily carried on by you (other than a prescribed prize) that were not received in connection with your employment or in the course of business, to the extent that these amounts are more than your scholarship exemption. If you received a research grant, see Line 10400 – Other employment income .

Elementary and secondary school scholarships and bursaries are not taxable.

A post-secondary program that consists mainly of research is eligible for the scholarship exemption, only if it leads to a college or CEGEP diploma, or a bachelor, masters, or doctoral degree (or an equivalent degree). Post-doctoral fellowships are taxable.

Scholarship exemption

To claim a scholarship exemption, you must be enrolled in an educational program in which you are a qualifying student in 2022, 2023 or 2024.

Full-time enrolment

Post-secondary school scholarships, fellowships, and bursaries are not taxable if you received them in 2023 for your enrolment in a program for which you are considered a full-time qualifying student for 2022, 2023 or 2024.

The scholarship exemption will be limited to the extent that the award was intended to support the student’s enrolment in the program. To determine what portion of your award was intended to support your enrolment, you should consider such factors as:

the duration of the program
any terms and conditions that apply to the award
the period for which support is intended to be provided by the award

Part-time enrolment

If you have received a scholarship, fellowship, or bursary related to a part-time program for which you are a part-time qualifying student for 2022, 2023, or 2024, the scholarship exemption is limited to the tuition paid plus the costs of program-related materials.

To calculate your scholarship exemption, see Scholarship exemption – Part-time enrolment .

For more information, see Income tax folio S1-F2-C3, Scholarships, Research Grants and Other Education Assistance .

I have an amount in box 105 of my T4A slip from a university. I was not considered a qualifying student. Do I have to report this income on my return?

Only the part of the total of all the amounts you received in 2023 (box 105 of your T4A slips) that is more than $500.

Only the part of the total of all amounts you received in 2023 (box 105 of your T4A slips) that is more than $500.

For more information on completing your Income Tax and Benefit Return, go to Guide P105, Students and Income Tax .

Certain scholarship, fellowship and bursaries are not taxable, such as:

elementary and secondary school scholarship and bursaries
post-secondary school scholarship, fellowship, and bursaries received in 2023 if you are considered a full-time qualifying student for 2022, 2023, or 2024

If you received an artists' project grant, you may be able to claim certain exemptions.

For more information, see Students.

Forms and publications

Federal Income Tax and Benefit Guide
Guide P105, Students and Income Tax
Income tax folio S1-F2-C3, Scholarships, Research Grants and Other Education Assistance
Income Tax Folio S4-F14-C1, Artists and Writers

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Scholarships

Australia Scholarships

University of technology sydney presidents scholarships 2025 in australia.

Partial Funding
University of Technology Sydney
All Subjects
International Students

Description for University of Technology Sydney Presidents Scholarship:

Calling all ambitious students with an eye on the future! Are you gearing up for the 2025 scholarship session? Look no further than the University of Technology Sydney's President's Scholarship ! Valued at a substantial $37,000 per annum , tax-free, this scholarship provides unparalleled financial support, allowing you to focus wholeheartedly on your research journey. With durations of up to 3.5 years for PhD candidates and 2 years for MRes students, it ensures sustained assistance throughout your academic pursuit. Eligibility criteria include being defined as an overseas student, maintaining Overseas Student Health Cover, and embarking on full-time enrollment in a Higher Degree by Research at UTS . Applications open on November 1, 2024 , and close on January 15, 2025 . Start your preparations early, align your research interests with UTS's focus areas, gather required documentation, craft a compelling personal statement, and secure timely references. Submit your applications through the UTS scholarship portal for a chance to be part of the esteemed 2025 cohort. Don't miss this opportunity to propel your academic endeavors forward with the UTS President's Scholarship !

Degree Level for University of Technology Sydney Presidents Scholarship:

University of Technology Sydney Presidents Scholarships 2025 in Australia is available to undertake MRes, PhD level programs at University of Technology Sydney.

Available Subjects for University of Technology Sydney Presidents Scholarship:

Following subject are available to study under this scholarship program.

Benefits for University of Technology Sydney Presidents Scholarship:

Financial Freedom to Focus on Research:

The UTSP provides a generous living allowance to cover your expenses. You'll receive a tax-free stipend of $37,000 annually, allowing you to concentrate on your research without financial worries.

Long-Term Support for Your Research Journey:

The UTSP scholarship duration is tailored to your program. PhD candidates will receive funding for up to 3.5 years, while MRes (Masters by Research) students will be supported for up to 2 years. This ensures you have consistent financial backing throughout your research journey at UTS.

Eligible Nationalities for University of Technology Sydney Presidents Scholarship:

This scholarship is open to international students of all nationalities.

Eligibility Criteria for University of Technology Sydney Presidents Scholarship:

To qualify for the UTSP scholarship, you must be:

An international student according to the Higher Education Support Act 2003 (Cth).
Enrolled full-time in a Higher Degree by Research (HDR) program at UTS. Your application for the program must be accepted by the university before applying for UTSP.
Covered by a standard Overseas Student Health Cover (OSHC) policy approved by the Australian Government Department of Health.
Pursuing research in a field that aligns with UTS's areas of research focus.
A first-time applicant for a postgraduate research degree (no prior degrees at the same or higher level).
Not receiving any other Australian Government-funded postgraduate research scholarship, except in cases where the previous scholarship was terminated within six months of the first payment.
Not currently holding an award, scholarship (excluding an Industry Postgraduate Research Scholarship - IPRS), or salary that provides more than 75% of the UTSP stipend amount to support your HDR studies. This excludes income from sources unrelated to your studies.

Remember: Submit your complete application with all necessary documents by the deadline. Incomplete or late applications won't be considered.

Application Procedure for University of Technology Sydney Presidents Scholarship:

Get Ready to Apply for the UTSP (Early Bird Advantage!)

Before you dive in, make sure your research interests align perfectly with one of UTS's areas of research focus.
Collect all the required documents , like academic transcripts, proof of English language proficiency, and any other certifications or recommendation letters.
Craft a powerful personal statement that highlights your research goals, the potential impact of your work, and why UTS is your dream destination.
Reach out to potential referees early on to give them ample time to write and submit their recommendation letters for you.
Applications are submitted electronically through the UTS scholarship portal . Find the portal and more details on the UTS President's Scholarship page .

Don't wait! Start preparing now to showcase why you deserve to be part of the prestigious 2025 UTSP cohort!

Achievement Scholarships for International Undergraduate Students: Engineering and Information Technology, University of Technology Sydney

American University Emerging Global Leader Scholarship Fall 2025

Oppurtunities according to your interest, university of technology sydney scholarships, international students scholarships, all subjects scholarships, mres scholarships, phd scholarships, partial funding scholarships, ultimo scholarships, quick links.

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📢📢 Call for Applications: International Senior Fellowship Programme 2025-26 (Germany)

The College for Social Sciences and Humanities is calling for applications for the International Senior Fellowship Programme . This unique opportunity is open to advanced international researchers who seek to collaborate with tandem partners from the University Alliance Ruhr on research projects in the fields of social sciences and/or humanities. The six-month research fellowships at the College may start in March 2025 or September 2025. Up to 20 Senior Fellowships will be awarded.

Application Requirements

Interested applicants should:

be advanced and well-established senior researchers, preferably R4 level (which is equivalent to a full professor ranking)
be active members of an university or research institution
have an outstanding research profile in the social sciences and/or the humanities (proven primarily by a significant track record of excellent publications)
have completed a doctorate at least six years prior to the application
have identified a member of the UA Ruhr as a potential tandem partner prior to the application (please click here to learn more about potential tandem partners)

Expectations

During the fellowship, fellows are expected to:

live and work in the Ruhr area, Germany
be present at the College at least three days per week (Tue – Thu)
actively take part in the weekly colloquium as well as in other academic activities of the College, such as conferences, lectures, reading groups
collaborate with the tandem partner on a regular basis
organise at least one event, such as workshop, lecture, seminar with the tandem partner
acknowledge the College for Social Sciences and Humanities in talks and publications related to the fellowship

The working language at the College is English, proficiency in German is not mandatory.

Scope of Support

Fellows who are granted leave of absence with continued payment of their salary will receive a general allowance of €3,050 per month (pre-tax), a family allowance of €250 per month (if applicable), and a mobility allowance of €125 per month to cover relocation costs.
Fellows who are granted leave of absence without continued payment of their salary will be funded by means of a compensation agreement within reasonable limits (with approximately €7,100 pre-tax per month). Alternatively, fellows may receive a monthly grant of €5,000 (pre-tax).
A project budget of €7,500 max. (€1,250 per month) to support the collaboration, e.g. joint workshops, conferences, publications
Travel expenses and visa costs
Costs for accommodation, health insurance and other expenses to be covered by the fellows

Application

Interested parties should first identify a tandem partner from the UA Ruhr and submit their application with required documents via the online form by 11 June 2024, 05:59 (HKT) . Selected candidates will be informed shortly after the selection which takes place in July / August.

For further information, please refer to the webpage . For enquiries, please contact Sophia-Helena Zwaka ( [email protected] ). Applicants are advised to send a copy of their application to the Office of Academic Links (c/o Ms. Ching Yee Lai; [email protected] ) for record.

📢📢[Nominations for Mentees] APRU Asia Pacific Women in Leadership (APWiL) Mentoring Program 2024-25 (Internal deadline: 24 May 2024)

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