<p>I heard from some friends that if you are on Brown University scholarship you have to pay taxes for it. Is this true?</p>
<p>No, scholarships and Financial Aid is nontaxable.</p>
<p>Scholarships/grants that are MORE than tuition and fees & books REQUIRED by Brown ARE taxable (but not the entire scholarship amount). You report this taxable scholarship amount as income, along with any other income (summer job, work-study job, interest on savings).</p>
<p>Jerzgrlmom is correct. Scholarships and grants used to pay for Qualified education expenses such as tuition and fees and required books are not taxable. Any scholarships or grants in excess of this are taxable income. For instance scholarship and grant money used to pay room and board is taxable income. This is true of all scholarships and grants (including need based grants).</p>