W-9 forms may be required from scholarship or grant recipients to whom we issue direct payments due to IRS tax regulations. This ensures compliance with IRS requirements and allows us to provide recipients with a 1099 tax form, as these funds may be considered taxable income if they do not meet the requirements of tax-free educational expenses.
A scholarship or grant is tax-free only to the extent:
It is used for and doesn't exceed your qualified education expenses
It isn't designated or earmarked for other purposes (such as room and board) and doesn't require (by its terms) that it can't be used for qualified education expenses
It doesn't represent payment for teaching, research, or other services required as a condition for receiving the scholarship
Qualified Education Expenses
Qualified Education Expenses
Tuition and fees required to enroll at or attend an eligible educational institution
Course-related expenses, such as fees, books, supplies, and equipment that are required for the courses at the eligible educational institution. These items must be required of all students in your course of instruction
Unqualified Expenses
Unqualified Expenses
Room and board
Travel
Research
Clerical help
Equipment and other expenses that aren't required for enrollment in or attendance at an eligible educational institution
Other expenses unrelated to qualified education expenses.
Please review the Internal Revenue Service Publication 970 for more details.
For any tax-related questions or advice, please consult with your tax advisor.