[header] How to calculate taxes on scholarships and grants [title] Check if you attend an eligible institution. [step] Your scholarships and grants may be tax free if you attend an eligible educational institution. The irs defines an eligible institution as one whose primary function is to present formal instruction. 
It must have a regular curriculum and faculty along with a regular student body enrolled in the school. [substeps] The school can be a primary or secondary school, or a college or university.