Taxes

Do I have to pay taxes on the scholarship funds I receive?
Under the Tax Reform Act of 1986, any funds you receive from scholarships, benefits, fellowships, and grants from BYU-Hawaii or any other source that combined exceed the cost of tuition, fees, books, and required equipment and supplies are considered taxable income. These funds include Pell Grants but not BYU-Hawaii or federal loans. Since you are required to report taxable awards to the IRS as income, you should keep a detailed record of all expenditures for tuition, fees, books, and required equipment and supplies. Housing and food are considered nonexempt. Scholarship and grant moneys spent on these items are subject to income tax. Consult your tax advisor for additional details. The university is obligated by law to report all foreign student scholarship income to the Internal Revenue Service.

Does BYU-Hawaii withhold any taxes from my scholarship?
Except for international students on scholarship, the University is not required to withhold any amounts from scholarship payments. You will be entirely responsible for any taxes that may be due the government. The law concerning taxation of scholarships and fellowships is complex and is outlined by the Internal Revenue Service. For more detailed information, consult your personal tax advisor.