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Important
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For information call now:
(347) 989-4566
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Additional information
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Internal Revenue Service
Austin Service Center
ITIN Operation
P.O. Box 149342
Austin, TX 78714-9342
IN
1-800-829-1040
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Scholarships and Fellowship Grants
If you are a candidate for a degree, you may be able to exclude from your income
part or all of the amounts you receive as a qualified scholarship.
If a nonresident alien receives a grant that is not from U.S. sources, it is not
subject to U.S. tax.
A scholarship or fellowship is excludable from income only if:
1. You are a
candidate for a degree at an eligible educational institution, and
2. You use the scholarship or fellowship to pay
qualified education expenses.
Amounts used to pay expenses that do not qualify. A scholarship amount used to
pay any expense that does not qualify is taxable, even if the expense is a fee
that must be paid to the institution as a condition of enrollment or attendance.
You cannot exclude from income the portion of any scholarship, fellowship, or
tuition reduction that represents payment for past, present, or future teaching,
research, or other services. This is true even if all candidates for a degree
are required to perform the services as a condition for receiving the degree.
Example.
On January 7, Maria Gomez is notified of a scholarship of $2,500 for the spring
semester. As a condition for receiving the scholarship, Maria must serve as a
part-time teaching assistant. Of the $2,500 scholarship, $1,000 represents
payment for her services. Assuming that Maria meets all other conditions, she
can exclude no more than $1,500 from income as a qualified scholarship.
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