Stipends and Tax Reporting
A scholarship/fellowship payment received by a candidate for a degree is generally not taxable income to the student if it is used for "qualified expenses." Qualified expenses are defined by the IRS and include tuition and required fees, and/or expenses for books, supplies and equipment required of all students in the course. These payments do not need to be reported to the IRS by the student or the University.
A scholarship/fellowship used for expenses other than qualified expenses is taxable income. Taxable scholarships are generally referred to as stipends, and are payments for which no services are rendered or required. Examples of stipends are payments that can be used for living and incidental expenses such as room and board, travel, non-required books and personal computers, etc.
Stipends are considered taxable income to students. However, based on IRS rules, the University does not withhold tax on stipends or provide students with tax Form 1099. Students are responsible for reporting taxable stipend payments along with any other payments they receive and remitting any tax due with their personal income tax return. (Foreign students who are non-resident aliens will receive a Form 1042-S reporting taxable stipends, and U.S. withholding tax may apply.)
Students should maintain a record of the stipend payments they have received during the calendar year (January 1 to December 31), remembering to include payments they received by check via Accounts Payable. The total annual payments received can also be obtained from the departmental award letter(s). However, since these award letters are generally based on academic year as opposed to calendar, you may need to reference the award letters for multiple academic years to ascertain the total calendar year amount.
1098-T Education and Tax Credit Information
The federal government provides two types of tax credits for educational expenses paid by students during the tax year. However, not all expenses students pay to the University are considered qualified expenses by the IRS for these tax credits. In general, tuition and fees that are directly related to attendance and education are allowable. Room and board, books, insurance, and other personal expenses are generally not allowed. You should review the IRS Publication 970 for more information, or you may consult your tax professional.
Please note: University staff cannot assist you in tax matters. If you need assistance completing your taxes, you should consult with a qualified tax specialist or a CPA firm.
Form 1098-T, issued by the University, is the form you need to determine whether you are eligible for the tax credits. FAQs are provided on AskUs to assist you with some of the general questions that you may have regarding the 1098-T form, including instructions to download the form. These FAQs are not intended to serve as advice in completing your tax return.
Federal websites on educational tax credits include:
- The IRS publications website
- Department of Education website
- IRS Tax Information for Students
- Tax Benefits for Education (IRS Publication 970)
Canadian Tuition Receipt
Canadian Tuition Receipt (TL-11A) This form is used to certify eligibility for the tuition, education, and textbook amounts of a student attending a university outside Canada and to show the maximum tuition, education, and textbook amounts a student can transfer to a designated individual. It is the Official Tuition Receipt and is calculated in U.S. funds. A Canadian tuition receipt (TL-11A) can be requested by contacting the Service Center at Ask Us.
Please provide the CUID, the tax year requested, and the mailing address. Requests usually take up to 6 business days. Students can choose to pick them up in person at 205 Kent Hall or have them mailed.