Income Codes (continued)

Income Code 16—Scholarship or Fellowship Grants (continued)

Income or the waiver of fees is treated differently in each category:

• Money received for tuition, fees, books, and/or supplies is not taxable if it was spent for the purpose intended and there was no requirement to perform services
• Money received for room and board is normally taxable, but some countries have treaty provisions making it nontaxable. Usually there are a maximum number of years during which the income is nontaxable. Click here to view countries with treaty benefits for scholarship income.
• Money received for performing services such as teaching or research is treated as wages