Taxability of Scholarships
If you received grant and scholarship aid that exceeds the cost of tuition, fees, and books in a calendar year, you may have taxable student financial aid that should be included on your U.S. income tax return.
Similarly, if you receive any grant or scholarship assistance that is specifically designated for a cost other than tuition, fees, and books, these amounts are taxable. You may also need to include these amounts on your state tax return.
Please review Chapter 1 of IRS Publication 970 to determine whether your awards are taxable.