Is a scholarship taxable if it is foreign-based?

Foreign nationals who are resident aliens are taxed on worldwide income in the same manner as U.S. citizens, so the source of their income is not relevant.

Nonresident aliens are taxed only on U.S.-source income and income connected to a U.S. trade or business. Therefore, Nonresident aliens are not taxed on foreign-source scholarship and fellowship grants.

A scholarship or fellowship grant is foreign-source if the grantor is a foreign resident, a foreign government, international organization, or if the grantor is a U.S. resident but the educational activity takes place outside the U.S.