What about taxation of Scholarships, Fellowships, and Awards?
If you receive a scholarship or fellowship, you may have to pay tax on the amount you do not use to pay for tuition and course-related supplies (books, lab fees, etc.). This does NOT, however, include federal or state grants (such as PELL, SEOG, TAP, etc.), nor does it include federal loans (such as Direct Subsidized/unsubsidized Student loans, Stafford loans, PLUS, etc.).
EXAMPLE: Suppose you receive a $4000 scholarship. You spend $1500 for tuition and $300 for books. You spend the remaining $2200 for room and board. The $2200 is taxable and must be reported when filing your tax returns.
