Scholarship Tax Calculator

Personal Information

Are you pursuing an academic degree or

certificate? info icon vector In other words, are you in school right now working toward graduating? If so, answer "Yes".

Was your scholarship/grant awarded as payment for services you

performed? info icon vector Answer “Yes” if you had to do some kind of work to get this money.

Was your scholarship one that is exempt from fee-for-services

restrictions? info icon vector If your scholarship was awarded by any of the following, answer “Yes”: National Health Service Corps Program, Armed Forces Health Professions Scholarship and Financial Assistance Program, or a comprehensive student work-learning-service program operated by a work college.

Did you perform those services as a teaching or research assistant?

certificate? info icon vector If you did get this scholarship for working, was that as a teaching or research assistant? If so, answer "Yes".

Student Tax Information

info icon vector Hint: if you're talking about income you made in 2020, the tax year would also be 2020.

info icon vector If you're not married, choose single. If you are, choose 'Separately' only if you file your taxes separately from your spouse.

info icon vector This includes grants, scholarships and tuition waivers.

info icon vector These are what we call 'Qualified expenses', which basically means the things you can spend your scholarship money on tax-free. That includes tuition, required fees, books, supplies and equipment.

Work Income Information

info icon vector How much did you earn last year (before tax)?

Some scholarships are indeed taxed. It depends on how the money is used and certain qualifications of the student.

The student receiving the scholarship must be a degree candidate at an eligible institution. The money must be used for qualified expenses, such as tuition and fees, books, supplies and equipment.

If the scholarship is used for non-qualified expenses it could be taxed. Non-qualified expenses include room and board, travel, food and other living expenses. A scholarship may also be considered taxable income if the student is not a degree candidate or if it is paid as wages.

You can claim an education tax credit, like the American Opportunity Tax Credit or Lifetime Learning Tax Credit, if your qualified expenses exceed what the scholarship covers.

No, student loans are not considered income and need to be repaid, so these are not taxed. There is a student loan interest deduction for interest paid on federal and private student loans.