Qualified education expenses, for purposes of tax-free scholarships and fellowships, are expenses for tuition and fees required to enroll at or attend an eligible education institution and course-related expenses, such as fees, books, supplies and equipment that are required for the course at the eligible educational institution. These items must be required of all students in your course of instruction.
Qualified scholarships or fellowships are usually applied directly to the student’s account and the income is not subject to tax withholding and it is not reportable income.
- Foreign National Tax Compliance, University Controller’s Office
- IRS Tax Topic 421, Scholarships, Fellowships Grants, and Other Grants