Question #1: Do I have to declare my scholarship for tax purposes?
Under tax laws, funds awarded as scholarships, fellowships, benefits, and grants, are excluded from the recipient's gross income to the extent that they are used for required tuition, books, fees, supplies, and equipment. Funds that exceed these expenses or which are used for other purposes, including room, board, research, and travel, must be included as taxable income. Because you are responsible to pay any taxes due the government, you should keep receipts, cancelled checks, and other documents to detail your qualified expenditures, namely, required tuition, books, fees, supplies, and equipment. Since tax liability depends on each individual's circumstances, you should consult your personal tax advisor with any questions or concerns.


Question #2: Will BYU withhold any taxes on my scholarship?
Except for international students, the university is not required to withhold any amounts from scholarship payments. You will be entirely responsible for any taxes due the government. The law concerning taxation of scholarships and fellowships is complex and is outlined by the Internal Revenue Service. For more detailed information, consult your personal tax advisor.