Most of the scholarships you get are tax free but there are those that are taxed. What is chargeable or not is determined by the IRS and most of the time scholarships meant for tuition are not taxed. The erudition money you pay for room and boarding, traveling, research and equipment may be taxed. The reason why scholarships may be taxed is because they are regarded as your income. Once you get a erudition, you should find out if the award is tax free or not. Hector Milla Editor of the “Free Scholarships And Grants” website — http://www.FreeScholarshipsAndGrants.org/free-online-scholarships-money — pointed out; “…There are scholarships that are agreed to both citizens and non-citizens and may be tax free for the citizens but chargeable to the non-resident beneficiaries. In such cases, the exhausting is done by their home country since the erudition may be subject to the tax laws of the said country…” Many scholarships may be exempted from taxes but this will depend on what the erudition is meant for. Most people want to know when a erudition is tax free and if you are a fulltime or part-time student at an institution, the erudition you get is tax free. This means that the money is used for your tuition fees at the institution as well as for export books and other materials you will need for your studies. Most of the time when you get the erudition, you will be told whether it is chargeable or not but you can find out by yourself so you know whether you are supposed to file tax income or not. Other scholarships not meant for learning purposes such as those that are open and do not specify what the benefactor may do with the money are chargeable. “…If you intend to have a college degree and know that you will be a full time or part time student, you can rest assured that your erudition will be tax free unless otherwise stated. Your tax advisor should be able to tell you more on your erudition and tax…” added H. Milla. Further information about trusted and reputable sources for government grants by visiting; http://www.FreeScholarshipsAndGrants.org/free-online-scholarships-money