Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Nonresident Income and Deductions

Taxation of Nonresidents

Scholarships and Fellowships

Income in the form of a scholarship or fellowship is treated in one of three ways. It is either:

  • Excludable under the Internal Revenue Code (this is called the Section 117 exclusion),
  • Exempt by treaty, or
  • Taxable
College setting