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

Income — Wages, Interest, etc. Workout

Scholarship and Fellowship Income

Case Study 1: Reporting Scholarship Income

Cassandra has received a Form W-2 for her part-time job and another Form W-2 for a college scholarship she won last year. What is the correct treatment of these income amounts?

A Both Forms W-2 should be included in income on Cassandra's tax return
B Cassandra only needs to report the wages from her part-time job as income
C Cassandra must file a paper return and write "SCH" next to the scholarship amount
D Report only her part-time income and write "SCH" next to the scholarship amount


Cassandra.
Publication 4012, Tax Treatment of Scholarship and Fellowship Payments
Publication 970

Publication 4012, Tax Treatment of Scholarship and Fellowship Payments

Publication 970