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Are the proceeds received by a student from a scholarship or fellowship grant considered to be gross income for individual income tax purposes?

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Are the proceeds received by a student from a scholarship or fellowship grant considered to be gross income for individual income tax purposes?

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Amounts received as a scholarship and or fellowship by an individual who is a candidate for a degree at a qualified educational organization is not included in gross income so long as the proceeds are used for tuition, books and other course required expenses.

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