Are academic awards taxable?

Prizes and awards are taxable for the recipient. A prize or prize paid to a U.S. student (including a resident alien) can be declared to the IRS, depending on the amount of the award, on Form 1099-MISC. Your scholarship may or may not be taxable.

Generally speaking, a scholarship or scholarship is tax-free if you are a candidate for a degree and the award is used to pay for required tuition and fees, books, supplies, and equipment; however, there are some scholarship and scholarship opportunities that are not tax-exempt. Any amount used to pay for room and board or a stipend for living expenses is taxable. There are also a variety of coordination restrictions that aim to ensure that there is no double recourse when taking advantage of tax benefits for education. What if you're lucky enough to win a merit award for your outstanding contributions to science, art, or your community? Do you have to pay income taxes on the amount? The short answer is yes.

Unsolicited merit prizes or awards are fully taxable, with one exception in the case of cash prizes received from the United States Olympic Committee for having competed in the Olympic or Paralympic Games.

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