Printable Form 2026

IRS Form 9368 – IRS Forms, Instructions, Pubs 2026

IRS Form 9368 – IRS Forms, Instructions, Pubs 2026 – In the world of higher education funding, scholarships and fellowship grants can be a game-changer, providing essential financial support for students and researchers. However, when it comes to taxes, these awards aren’t always straightforward. That’s where IRS Form 9368 comes into play. This questionnaire helps the Internal Revenue Service (IRS) evaluate whether your scholarship or fellowship income is taxable during an audit or examination of your tax return. If you’re a recipient wondering “What is IRS Form 9368?” or “How do I handle taxes on scholarships?”, this SEO-optimized guide breaks it down step by step using the latest trusted sources from the IRS.

Whether you’re a student, parent, or tax professional, understanding Form 9368 can save you time and potential headaches. We’ll cover its purpose, when it’s required, how to fill it out, and key tax rules for scholarships and fellowships. Let’s dive in.

What Is IRS Form 9368?

IRS Form 9368, officially titled “Questionnaire – Scholarship or Fellowship Grant,” is a specialized document used by the IRS to gather detailed information about scholarships or fellowship grants reported on a taxpayer’s return. It’s not a form you file proactively with your annual tax return like Form 1040. Instead, the IRS may send it to you if they’re examining your return and need more details on a grant to determine its tax treatment.

Revised in May 2015, the form includes fields for your name, address, tax year, and the last four digits of your Social Security Number. It requires you to provide a copy of the grant award and your application, ensuring transparency in how the funds were awarded and used.

Key purpose: This questionnaire assists the IRS in verifying if the grant qualifies as tax-free or if portions are taxable income. It’s particularly relevant for degree candidates at accredited institutions, but it applies broadly to any scholarship or fellowship under review.

When Do You Need to Complete IRS Form 9368?

You typically encounter Form 9368 during an IRS audit or examination related to education-related income. If you’ve reported a scholarship or fellowship on your tax return—either as taxable or nontaxable—the IRS might request this questionnaire to cross-check details.

Common scenarios include:

  • Receiving a large grant that raises red flags in your return.
  • Claiming the grant as tax-free but using funds for non-qualified expenses like room and board.
  • Situations where the grant involves services, such as teaching or research, which could make it taxable.

Remember, scholarships and fellowships are tax-free only if you’re a degree candidate at a qualifying educational institution and the funds cover qualified expenses (e.g., tuition, fees, books, and required supplies). If not, or if used for incidentals like travel or housing, the amounts become taxable.

For the most current rules, refer to IRS Publication 970, “Tax Benefits for Education,” which details education-related tax credits, deductions, and income exclusions. This publication is updated annually and covers topics like the American Opportunity Credit, Lifetime Learning Credit, and how scholarships interact with these benefits.

How to Fill Out IRS Form 9368: Step-by-Step Guide?

Completing Form 9368 is straightforward but requires accurate details. Answer all questions; use “N/A” for inapplicable items. Here’s a breakdown of the key questions:

  • Amount of the Grant: Enter the total dollar amount received.
  • Grantor Information: Provide the name of the organization or institution awarding the grant.
  • Additional Amounts: Indicate if you received extras like travel ($), materials/supplies ($), or other (specify).
  • Contract Terms: Check if the grant was under a U.S. Government or private organization contract.
  • Grant Period: Specify start and end dates (MM/DD/YYYY).
  • Recipient: Note if awarded directly to you, the school, or department head.
  • Research Freedom: Explain if you could choose your field and location.
  • Duties Performed: Estimate percentages for non-research tasks like examining patients, teaching, lecturing, or other.
  • Benefits Provided: List any sick leave, vacations, insurance, or other fringe benefits.
  • Progress Reports: To whom were they furnished?
  • Intellectual Property: Who owns copyrights or patents from your work?
  • Employment Ties: Detail past or future work with the grantor.
  • Previous Exclusions: Months of prior grant income excluded.
  • Leave of Absence: If applicable, provide employer statement on dates and return.

Finally, sign under penalties of perjury, certifying accuracy.

Tip: Download the latest version from the IRS website (Catalog Number 13346B) to ensure compliance.

Tax Rules for Scholarships and Fellowship Grants in 2026

Not all scholarships are taxable, but knowing the rules is crucial to avoid surprises. According to IRS guidelines:

  • Tax-Free Scholarships/Fellowships: Must be for a degree candidate at a qualifying institution and used solely for tuition, fees, books, supplies, and required equipment. Need-based grants like Pell Grants often qualify.
  • Taxable Portions: Include funds for room/board, travel, or optional items. Also taxable if the grant requires services (e.g., teaching), unless under specific programs like the National Health Service Corps.
  • Reporting Taxable Amounts: On Form 1040 or 1040-SR, add to wages (Line 1a if on W-2) or Schedule 1 (Line 8r) with “SCH” notation if not on W-2. For non-resident aliens, use Form 1040-NR.
  • Estimated Taxes: If taxable, you may need to make estimated payments to avoid penalties. Check Publication 505 for details.

Publication 970 provides in-depth coverage, including how scholarships affect other tax benefits like education credits. It’s essential for anyone navigating education expenses in 2026.

Common Mistakes to Avoid with Form 9368 and Scholarship Taxes

  • Misclassifying Expenses: Don’t assume all grant money is tax-free—track usage carefully.
  • Incomplete Responses: Always attach the grant documents and answer fully to speed up the process.
  • Ignoring Treaty Benefits: International students may qualify for exemptions under U.S. tax treaties.
  • Forgetting Estimated Taxes: Taxable grants can increase your liability; plan ahead.

Conclusion: Stay Compliant and Maximize Your Benefits

IRS Form 9368 is a tool for clarity during tax examinations, ensuring scholarships and fellowships are treated correctly under the law. By understanding its questions and the broader tax rules from IRS Publication 970 and Topic 421, you can confidently manage your education funding. If you’re under audit, consult a tax professional for personalized advice.

For the official form, download it directly from the IRS: https://www.irs.gov/pub/irs-pdf/f9368.pdf. Stay updated by visiting IRS.gov regularly, as rules can evolve.

This guide is for informational purposes only and not tax advice. For specific situations, refer to a qualified tax advisor.