Preparing Form 1040-NR (continued)

Scholarships and Fellowship Grants

Nonresident students must report all scholarships they receive for room and board and living expenses that are not exempted by their treaty. Scholarships that cover only tuition, required textbooks, course-related materials, and fees are not reported. Scholarships from outside the U.S. are not reported either. If the student uses part of a reportable scholarship to pay for tuition, required textbooks, course-related materials, fees or supplies, these expenses can be deducted on the Scholarship and fellowship grants not reported on Form W-2 line, Schedule 1 (1040) that flows over to Form 1040-NR, Other income from Schedule 1.