Irs Section 117

Citizens and resident aliens are not generally reportable to the irs and are not generally subject to withholding of tax.

Irs section 117. If however only a portion of a scholarship or fellowship grant is excludable from gross income under section 117 a 1 because of the part time employment limitation contained in section 117 b 1 or because of the expiration of the 36 month period described in section 117 b 2 b only the amount received to cover expenses incident to such excludable portion is excludable from gross income. 117 a general rule gross income does not include any amount received as a qualified scholarship by an individual who is a candidate for a degree at an educational organization described in section 170 b 1 a ii. Internal revenue code 117.

For purposes of applying section 117 d 3 of the internal revenue code of 1954 now 1986 to all tuition reduction plans of an employer with at least 1 such plan described in paragraph 1 of this subsection there shall be excluded from consideration employees not included in the plan who are included in a unit of employees covered by an agreement that the secretary of the treasury or his delegate finds to be a collective bargaining agreement between employee representatives and 1 or more. 1954 ends after december 31 1984. Accordingly for purposes of section 117 the term educational organization means only an educational organization which normally maintains a regular faculty and curriculum and normally has a regularly organized body of students in attendance at the place where its educational activities are carried on.

For more detailed codes research information including annotations and citations please visit westlaw. However section 117 d 1 of the internal revenue code allows employees of certain educational institutions including nonprofit universities and colleges to exclude from gross income qualified undergraduate tuition reduction they their spouse or their dependent children receive from the employee s employer. The amendments made by this section amending this section and sections 6501 and 6511 of this title shall apply to expenditures with respect to which the second taxable year described in former section 118 b 2 b of the internal revenue code of 1986 formerly i r c.

In addition to participating in the promulgation of treasury tax regulations the irs publishes a regular series of other forms of official tax guidance including revenue rulings revenue procedures notices and announcements see understanding irs guidance a brief primer for more information about official irs guidance versus non precedential rulings or advice. Findlaw codes are provided courtesy of thomson reuters westlaw the industry leading online legal research system. Other official tax guidance.

Payments of scholarships fellowships and grants paid to u s. However payments of taxable scholarships fellowships and grants to nonresident aliens are generally reportable to the irs and are generally subject to withholding of u s.