Introduction

This chapter discusses the income tax treatment of various types of educational assistance you may receive if you are studying, teaching, or researching in the United States. The educational assistance can be for a primary or secondary school, a college or university, or a vocational school. Included are discussions of:

• Scholarships;

• Fellowship grants;

• Need-based education grants, such as a Pell grant; and

See chapter 12 for information about getting these publi- cations and forms.

4 Chapter 1 Scholarships, Fellowship Grants, Grants, and

Tuition Reductions

Publication 970 (2025)

• Qualified tuition reductions.

Many types of educational assistance are tax free if they meet the requirements discussed here.

Special rules apply to U.S. citizens and resident aliens who have received scholarships or fellowship grants for studying, teaching, or researching abroad. For information about these rules, see Pub. 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad.