What portion of my scholarship award may be considered taxable?

U.S. tax law divides scholarships received into two parts. Scholarship that is used for tuition is not taxable, but scholarship that is used for living expenses is taxable. Expenses that are considered tuition include all tuition and fees required for enrollment, books, fees, supplies, and equipment for courses of instruction. Additional amounts, such as amounts provided for room and board or for travel expenses, are taxable.

See also: Taxes, 1042-S