Is an academic scholarship or grant taxable?

Qualified scholarships, grants and fellowships are treated as tax-free amounts if all of the following conditions are met:

You are a candidate for a degree at an educational institution,

Amounts you receive as a scholarship or fellowship are used for tuition and fees required for enrollment or attendance at the educational institution, or for books, supplies, and equipment required for courses of instruction, and

The amounts received are not a payment for your services.