Academic Scholarships and Fellowships
Learn how taxpayers pursuing higher education may often exclude the value of scholarships and fellowships from their gross income.
Transcript
In this lesson, we'll survey the rules by which some scholarships, fellowship grants, and tuition reductions are excluded from gross income.
Scholarships and Fellowships Defined
A scholarship is a payment or allowance to, or for the benefit of, an undergraduate or graduate student to aid in pursuing the student’s studies. A fellowship grant is a payment or allowance to, or for the benefit of, an individual to aid the individual in pursuing study or research. Both terms include payments and...