Other Important Items

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.