Stipend VS Scholarship

	Financial Services Compensatory Stipend vs Scholarship Stipend Guidelines
	This web-site follows a decision tree developed by the ASU Tax Manager for the purpose of assisting ASU Departments in determining whether a stipend payment can be made through Payables & Reimbursements or should be paid through the Human Resource payroll system. For a "hard copy" printout of this guide, please click here. In order to print this form, you will need Adobe Acrobat reader. If you do not yet have Acrobat reader, click here to download. All income received by the student or participant is taxable income regardless of classification as scholarship stipend or compensatory stipends. However, amounts classified as scholarship stipends are eligible for potential exclusion from income under IRC Section 117 for amounts paid for tuition, required fees, books and course required school supplies. On the other hand, for amounts classified as compensatory stipends, the exclusion from income under IRC 117 for amounts paid for tuition, required fees, book and course required school supplies is NOT available. In addition, for compensatory stipends, ASU has tax reporting and tax withholding responsibility; for scholarship stipends, ASU has no tax reporting or tax withholding responsibilities.