Scholarships and Fellowships

Scholarships and fellowships may be fully or partially taxable, or nontaxable. If the taxpayer received a Form W-2 for the scholarship or fellowship, include the amount on Form 1040, just as you would for any other Form W-2. This income is included in the total on Form 1040, line 7.

To determine if any part of a scholarship or fellowship is taxable, review the information in the TIP table in the Volunteer Resource Guide (Tab D), Tax Treatment of Scholarship and Fellowship Payments. For additional information, see the instructions for Form 1040 and Publication 970, Tax Benefits for Education.