Neither the Graduate Post nor this funding peer is qualified to advise you on your taxes.
For professional help, we suggest you consult a paid or free volunteer tax preparer.
Scholarships and Fellowships
Determining how much of your scholarship or fellowship is tax free depends on the type of expenses you used it for.
Your scholarship or fellowship is tax free only if you meet the following conditions:
- You were enrolled for a graduate degree at UCSB (or an eligible institution).
- You used the scholarship or fellowship funds to pay for qualified education expenses.
- The funds did not represent payment for teaching, research, or other services required as a condition for receiving the scholarship.
Qualified Education Expenses
For purposes of tax-free scholarships and fellowships, qualified expenses are the following:
- Your UCSB tuition and fees (required for enrollment).
- Other course-related expenses, such as fees, books, supplies, and equipment that are required for your UCSB courses. However, these items must be required of all students in your course and not just you.
NOTE: To qualify, the terms of your scholarship or fellowship cannot require that it be used for other purposes, such as room and board, or specify that it cannot be used for tuition or course-related expenses.
Expenses You Pay Taxes On For Your Scholarship or Fellowship
These education expenses do not qualify:
- Room and board.
- Clerical help.
- Equipment and other expenses that are not required for enrollment at UCSB.
NOTE: This is true even if the fee must be paid to the institution as a condition of enrollment or attendance. Scholarship or fellowship amounts used to pay these costs are taxable.
Where to Report Your Scholarship or Fellowship on Your Tax Form
Report your taxable scholarship amount on one of these:
- Form 1040, line 7.
- Form 1040A, line 7.
- Form 1040EZ, line 1.
If you did not receive a Form W-2 listing the taxable amount, write “SCH” and the taxable amount on the dotted line to the left of line 7 or line 1.
To learn more, see the publications page at www.irs.gov.
For other tax tips and resources.