Other Miscellaneous Financial Aid Topics
Object Codes - Prizes and Awards
Activity: Prizes and Awards – 4866
Financial Policy: N/A Related Policies: N/A Additional Forms: N/A Things to Know:
Prizes and Awards - 4866
Per IRS guidelines, “prizes” and “awards” that are not for the purpose of aiding the student's study, training, or research are not considered scholarships or fellowships. Examples include a prize paid for winning a piano competition, a prize paid to a figure of world renown for his outstanding achievements in a certain area of research or politics, or a prize paid for winning some sort of contest.
When paying a prize of this nature, the grantor does not specifically intend that the grantee spend the prize amount “for the purpose of aiding his study, training, or research,” but instead intends the prize to be an award which recognizes the achievement or renown of the grantee and which may be spent in any fashion the grantee sees fit (examples include highest GPA or outstanding thesis).
Such “prizes” and “awards” should be processed using an FIS disbursement voucher and object code 4866 to ensure that they are not counted as financial aid. IU reports such payments for tax purposes on Form 1099-MISC. Contact Rozzie Gerstman with questions. http://www.indiana.edu/~cats/presentations/2006/SUPPORTING%20FORM%20WHEN%20USING%20FIS%20DV%20FOR%20STUDENTS_06_26_2006.doc
