How does Harvard calculate the amount of my award that may be taxable?

A scholarship or fellowship grant is tax free (excludable from gross income) only if you are a candidate for a degree at an eligible educational institution. The taxable portion of your scholarship award is calculated as follows:
Total of all scholarships from Harvard University
Less: Required tuition and fees charged to your student bill  
Equals: Taxable portion of your award
Since it is impossible for the University to determine what each student pays for books, fees, supplies and equipment required for courses of instruction, only the amount of tuition and fees charged to your student account will be included in this calculation.

See also: Taxes, 1042-S