Fellowships Law and Legal Definition

Fellowships are tuition or living expenses aid to a person attending a educational institution. It is generally aimed to aid in the pursuit of study or research. Fellowships are generally not taxable income to the recipient. A fellowship is tax free only if:

  1. You are a candidate for a degree at an educational institution, and
  2. The grant is a qualified fellowship.

As defined under the tax code, an educational institution maintains a regular faculty and curriculum and has a regularly enrolled body of students in attendance at the place where it carries on its educational activities. A qualified fellowship is one used for tuition and fees required to enroll in or attend an educational institution, or for fees, books, supplies, and equipment required of all students enrolled in a course.