Introduction

This publication covers the rules for scholarships, fellowships, and tuition reductions. These amounts are tax free if they meet the rules discussed in this publication.

This publication also discusses the estimated tax rules and some of the special rules that apply to U.S. citizens and resident aliens who are studying, teaching, or researching abroad under scholarships and fellowships.

This publication does not discuss certain items that are covered in other publications. These include:

• Student loans that were canceled or forgiven. See Publication 525, Taxable and Nontaxable Income.
• Scholarships and fellowships paid to nonresident aliens. See Publication 519, U.S. Tax Guide for Aliens.