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If your only income is a completely tax-free scholarship or fellowship grant, you don't have to file a tax return and no reporting is necessary. If all or part of your scholarship or fellowship grant is taxable and you are required to file a tax return, report the taxable amount as explained below. You must report the taxable amount whether or not you re- ceived a Form W-2. If you receive an incorrect Form W-2, ask the payer for a corrected one. For information on whether you must file a return, see Pub. 501, Dependents, Standard Deduction, and Filing In- formation, or your income tax form instructions. How To Report How you report any taxable scholarship or fellowship grant income depends on which return you file. Form 1040 or 1040-SR. If you file Form 1040 or 1040-SR, include any taxable amount reported to you in box 1 of Form W-2 in the total on line 1a. Include any taxa- ble amount not reported to you in box 1 of Form W-2 on Schedule 1 (Form 1040), line 8r. Form 1040-NR. If you file Form 1040-NR, report any tax- able amount on Schedule 1 (Form 1040), line 8r. Gener- ally, you must report the amount reported to you in box 2 of Form(s) 1042-S, Foreign Person's U.S. Source Income Subject to Withholding. For more information, see the In- structions for Form 1040-NR. Other Types of Educational Assistance The following discussions deal with other common types of educational assistance. Fulbright Grants A Fulbright grant is generally treated as a scholarship or fellowship grant in figuring how much of the grant is tax free. Pell Grants and Other Title IV Need-Based Education Grants These need-based grants are treated as scholarships for purposes of determining their tax treatment. They are tax free to the extent used for qualified education expenses during the period for which a grant is awarded. Payment to Service Academy Cadets An appointment to a U.S. military academy isn't a scholar- ship or fellowship grant. Payment you receive as a cadet or midshipman at an armed services academy is pay for personal services and will be reported to you in box 1 of Form W-2. Include this pay in your income in the year you receive it. Taxable Scholarship and Fellowship Grant Income Worksheet 1-1. Keep for Your Records 1. Enter the total amount of any scholarship or fellowship grant for 2022. See Amount of scholarship or fellowship grant, earlier . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.

• If you are a degree candidate at an eligible educational institution, go to line 2. • If you aren't a degree candidate at an eligible educational institution, stop here. The entire amount is taxable. For information on how to report this amount on your tax return, see Reporting Scholarships and Fellowship Grants, earlier. 2. Enter the amount from line 1 that was for teaching, research, or any other services required as a condition for receiving the scholarship. Don't include amounts received for these items under the National Health Service Corps Scholarship Program, the Armed Forces Health Professions Scholarship and Financial Assistance Program, or a comprehensive student work-learning-service program (as defined in section 448(e) of the Higher Education Act of 1965) operated by a work college (as defined in that section) . . . . . . . . . . . . . . . . . . . . . . . . . . 2.

3. Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

4. Enter the amount from line 3 that your scholarship or fellowship grant required you to use for other than qualified education expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

5. Subtract line 4 from line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.

6. Enter the amount of your qualified education expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.

7. Enter the smaller of line 5 or line 6. This amount is the most you can exclude from your gross income (the tax-free part of the scholarship or fellowship grant) . . . . . . . . . . . . . . . . . . . . . . . . 7.

8. Subtract line 7 from line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.

9. Taxable part. Add lines 2, 4, and 8. See Reporting Scholarships and Fellowship Grants, earlier, for information on how to report this amount on your tax return . . . . . . . . . . . . . . . . . . . 9.

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