Taxable Scenarios Regarding Students

Office of the University Controller

Taxable Scenarios Regarding Students

This area within the tax guidebook is designed to help units at Indiana University navigate the often complex tax implications of student payments.

One of the main areas of focus within this section is the taxation requirements for student awards that include service components. Scholarships, fellowships, and other forms of financial support may require students to perform work or services. When this occurs, it becomes essential to distinguish between taxable and non-taxable elements. It is important to fully understand the purpose and circumstances surrounding the student payment as this will impact how payment is processed and the substantiation that is required for the payment. This resource provides clear explanations, practical examples, and guidance grounded in current tax regulations to ensure accurate reporting and compliance, ultimately supporting both institutional integrity and student success.