Statement Concerning Taxability of Scholarships and Grants
Amounts of scholarship or grant aid (not
loans or work) that exceed amounts used for payment of tuition, fees,
books, supplies, and equipment are considered taxable, and it is the
student’s responsibility to report these amounts on the income tax
return. Remember that the costs and financial aid amounts are for the
tax year, so a student would have to combine costs and aid from the
spring, summer, and fall semesters that are a part of the tax year (even
though they might not be part of the same academic year) in order to
determine whether or not any amount must be reported. To learn more
about this provision of Federal tax law, review IRS Publication 970. You
can find this on the IRS web page.