<p>You shouldn’t be subject to tax if your scholarship is used for tuition, fees, books and supplies. From the IRS: </p>
<p>Qualified scholarship and fellowship grants are treated as tax-free amounts if the following conditions are met:</p>
<p>You are a candidate for a degree at an educational institution that maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it carries on its educational activities; and
Amounts you receive as a scholarship or fellowship grant are used for tuition and fees required for enrollment or attendance at the educational institution, or for fees, books, supplies, and equipment required for courses at the educational institution.
[Tax</a> Topics - Topic 421 Scholarship and Fellowship Grants](<a href=“http://www.irs.gov/taxtopics/tc421.html]Tax”>Topic No. 421, Scholarships, Fellowship Grants, and Other Grants | Internal Revenue Service)</p>