A student receiving only a stipend will subtract the amounts used from the stipend to pay fees and tuition and pay taxes on the remainder. Fellowships providing funds for graduate student research expenses are taxable. For example, nonresident tuition fellowships, fee-paying fellowships, employee fee offsets and Doctoral Candidacy Fee Offset payments are not taxable. Like fellowships, stipends are taxable. Income used for the payment of tuition, fees, books, and course-related expenses is not taxable.
All salaries are taxable income.
The amount the student pays from earnings for fees, tuition, books, etc. may not be excluded. D. Grants for Travel to Scholarly Meetings Not taxable. Need-Based Financial Aid A. Loans Loans are not considered income since they have to be repaid. Loans, therefore, are not reported to the IRS, are not shown as income on tax returns, and are not taxable. Reporting and Withholding 1.