{"id":10563,"date":"2015-08-05T17:30:37","date_gmt":"2015-08-05T17:30:37","guid":{"rendered":"https:\/\/resource-center.hrblock.com\/?p=10563"},"modified":"2021-06-08T16:17:00","modified_gmt":"2021-06-08T21:17:00","slug":"are-scholarships-taxable","status":"publish","type":"post","link":"https:\/\/hrbcomlnp.hrblock.com\/tax-center\/income\/other-income\/are-scholarships-taxable\/","title":{"rendered":"Do I Have to Pay Taxes on Scholarships?"},"content":{"rendered":"<p><em><strong>Editor&#8217;s Note:<\/strong> Scholarships are free money! Actually, depending on how the scholarship money is used, it could be taxable. Read on to learn when you need to report money from scholarships and when it\u2019s tax-free.&nbsp;<\/em><\/p>\n<p>College students and their parents often ask whether or not you have to pay taxes on scholarships. As always, we are here to help!<\/p>\n<p>First, let\u2019s clarify which payments are scholarship payments. <a href=\"http:\/\/www.irs.gov\/taxtopics\/tc421.html\" target=\"_blank\" rel=\"noopener noreferrer\">Scholarships<\/a> are monetary amounts paid to a student, at an educational institution, for the purpose of<strong> study<\/strong>. This is important because some payments may be contingent on the student providing a service (like work-study) or as compensation for research. Those payments receive different tax treatment.<\/p>\n<p>Scholarships are tax-free when the student meets the following <a href=\"https:\/\/www.hrblock.com\/tax-center\/lifestyle\/education\/scholarship-money\/\" target=\"_blank\" rel=\"noopener noreferrer\">requirements<\/a>:<\/p>\n<ul>\n<li>The student is a candidate for a degree at an <a href=\"http:\/\/ope.ed.gov\/accreditation\/\" target=\"_blank\" rel=\"noopener noreferrer\">educational institution<\/a> that has regular faculty, regular curriculum and a regularly enrolled population of students in attendance.<\/li>\n<li>The amounts received are used to pay tuition, fees and other expenses generally required for enrollment in the course, such as certain books and supplies.<\/li>\n<\/ul>\n<p>If scholarship amounts are&nbsp;used for other expenses, they are <a href=\"https:\/\/www.hrblock.com\/tax-center\/lifestyle\/education\/scholarship-money\/\" target=\"_blank\" rel=\"noopener noreferrer\">included<\/a> in gross income; for example:<\/p>\n<ul>\n<li>Amounts used for incidental expenses such as room and board, travel and optional equipment.<\/li>\n<li>Amounts received as payment for teaching, research or other services that are required as a condition to receiving the payment. (Payments to students for services required by the National Health Service Corps Scholarship Program or the Armed Forces Health Professions Scholarship and Financial Assistance Program are excluded from gross income.)<\/li>\n<\/ul>\n<p>If you have amounts that must be included in taxable income, you will report them on Form <a href=\"http:\/\/www.irs.gov\/pub\/irs-pdf\/f1040.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">1040<\/a> or<a href=\"http:\/\/www.irs.gov\/pub\/irs-pdf\/f1040a.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">1040A<\/a>, or <a href=\"http:\/\/www.irs.gov\/pub\/irs-pdf\/f1040ez.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">1040EZ<\/a> on the \u201cWages, salaries, tips\u201d line. If no <a href=\"http:\/\/www.irs.gov\/pub\/irs-pdf\/fw2.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">W-2, <em>Wage and Tax Statement<\/em><\/a> was received, also enter \u201cSCH\u201d by the taxable amount. If you file a <a href=\"http:\/\/www.irs.gov\/pub\/irs-pdf\/f1040nr.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">1040NR<\/a>, there will be a line specifically for \u201cScholarships and fellowship grants.\u201d<\/p>\n<p>When in doubt, <a href=\"https:\/\/www.hrblock.com\/tax-offices\/local-offices\/\" target=\"_blank\" rel=\"noopener noreferrer\">contact a tax professional<\/a>&nbsp;when it comes to deciding if you have to pay taxes on scholarships or for help addressing your specific situation!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Editor&#8217;s Note: Scholarships are free money! Actually, depending on how the scholarship money is used, it could be taxable. Read on to learn when you need to report money from scholarships and when it\u2019s tax-free.&nbsp; College students and their parents often ask whether or not you have to pay taxes on scholarships. As always, we [&hellip;]<\/p>\n","protected":false},"author":418,"featured_media":26241,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[24,50],"tags":[],"class_list":["post-10563","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-income","category-other-income"],"acf":[],"yoast_head":"<title>Are Scholarships Taxable? | H&amp;R Block<\/title>\n<meta name=\"description\" content=\"Not sure if you have to pay taxes on your scholarship?\u00a0It depends on how the scholarship money is used. 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