IRS link for information on reporting graduate scholarships and fellowships: http://www.irs.gov/individuals/students/index.html The link discusses what scholarships and fellowships may be taxable, and much more, including FAQ's, examples and links. Please note that any scholarships, fellowships or Federal Work-Study earnings reported on a student's tax return should be noted on Worksheet C of the FAFSA. http://federalstudentaid.ed.gov/fafsa/fafsa_options.html