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Do I have to pay taxes on my scholarship?

Do I have to pay taxes on my scholarship?

Answer

If you are a nonresident alien and the scholarship is NOT form U.S. sources, it is not subject to U.S. taxes. If your scholarship is FROM U.S. sources or you are a resident alien, your scholarship is subject to U.S. taxes according to the following rules:

If you are a candidate for a degree, you may be able to exclude from your income the part of the scholarship you use to pay for tuition, Tuition Fees, books, supplies and equipment required by the educational institution. However, any part of the scholarship used to pay for other expenses, such as room and board. Is taxable.

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