- Scholarships and grants are considered taxable income by the IRS only to the extent that total value exceeds a student’s total tuition and book cost in the calendar year. The vast majority of K students are not receiving scholarships/grants that cover the entire cost of tuition so that for most students this is not a concern. However, we are providing the following information for you to consider as you prepare to file income tax returns. Foreign students are subject to a different set of taxation guidelines and should contact the IRS for assistance in filing their returns.
- Due to new federal regulations, if your financial aid application (FAFSA) is selected for verification, we will request a copy of your tax transcript instead of a copy of your tax return. This page gives the instructions on how to use the IRS Data Retrieval Tool on the FAFSA and how to request an official tax transcript from the IRS.