Under current Internal Revenue Service (IRS) regulations, a portion of your grant or scholarship may be considered taxable income, which must be reported on your Federal 1040 tax return. IRS regulations consider any amount or combination of scholarship, grant and NCAA Special Assistance Fund benefits greater than the amount of tuition, fees, and your cost of books and supplies to be taxable income.
For example (see below), if you received a total of $49,000.00 in grants/scholarships at Providence College in the calendar year 2016, you would have to include approximately $2,500 as taxable income when you file your 2016 Federal 1040 tax return.
The final determination of any tax liability and the payment of tax on your grant/scholarship is your responsibility. If you or your parents have any questions, you should seek the advice of a qualified tax counsel.