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Reportability of scholarship payment
May 12, 2023
Q. My company would like to make a school scholarship payment directly to the student. If the payment is above $600.00, do we have to issue a 1099 to the student?
A.
(Answered by IOFM's third-party tax experts)
Grant programs, including scholarship programs, must first be approved by the IRS. If the program is approved, scholarships paid to U.S. tax residents (U.S. citizens or U.S. resident aliens) are not reportable by the payer of the scholarship. The scholarship may or may not be taxable…
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