A scholarship is generally an amount paid or allowed to a student at an educational institution for the purpose of study. A fellowship grant is generally an amount paid or allowed to an individual for the purpose of study or research.
A scholarship or fellowship grant paid to a nonresident alien who is temporarily present in the USA may be taxable if it was used for incidental expenses, such as room and board, travel, research, clerical help, or similar expenses.
These amounts must be included in the individual's gross income. In certain cases, scholarship paid to cover tuition related expenses can constitute taxable income as well.
Important: If you are unsure if that code applies to you, please contact the payer of your income.