Income Exclusions for Scholarships
Scholarships are excludable from the recipient's gross income when the
following conditions are met:
* An award must be a qualified scholarship (the award can only be
applied to tuition and mandatory fees).
* The recipient must be a candidate for degree (matriculated).
* The award must be for the purpose of studying or conducting research
at an educational organization.
For IRS discussion of these exclusions, visit http://www.irs.gov/taxtopics/tc421
