Questions About Scholarship Tax on Graduate Level Program

Forum|Forum|3 years ago
May 13, 2022
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I have some questions regarding if scholarships and tuition remissions are taxable.

First, is scholarship for a graduate level program taxable?

Second, are tuition remissions from a Graduate Assistanships taxable?

Not A Product Question

Hal_Al

Employee

Q. Is scholarship for a graduate level program taxable?

A. It's treated the same as undergrad scholarships. That is, scholarships that cover qualified expenses (tuition. fees, books and other course materials, including a required computer) is tax free. Anything over that amount is taxable.

Q. Are tuition remissions from a Graduate Assistantships taxable?

A. Maybe. From IRS Pub 970:

"A tuition reduction you receive for graduate education is qualified, and therefore tax free, if both of the following requirements are met.
• It is provided by an eligible educational institution.
• You are a graduate student who performs teaching or
research activities for the educational institution.
You must include in income any other tuition reductions for graduate education that you receive."