Taxability of Scholarships & Grants
Scholarships and grants which exceed a certain level may be subject to taxation by the Internal Revenue Service (federal and state). If the student's scholarships and grants exceed tuition, fees, and the cost of books for the calendar year, the excess may be taxable income. This income should be reported on the student's personal tax return. Please note that loans are not counted in this calculation. The Office of Financial Aid is not in a position to advise you on this matter. We suggest you reference IRS Publication 970, Tax Benefits for Education and/or speak with a tax advisor.