Student Award Payments

A prize/award is any form of monetary payment to a student who has entered and won a judged competition, which was demonstrably open to both students and non-students. In order for a payment to a student to be considered a prize/award, there must have been a real possibility for non-students to have entered the competition and won the prize/award. If only UW Madison students were eligible to enter and win the competition, the transaction is a scholarship. For tax purposes, a scholarship or fellowship may be defined as any amount paid to an individual “for the purpose of aiding a student’s study, training, or research.”

An example of a prize would be a drawing for a gift certificate where everyone who attends an open lecture is entered into the drawing.

Awards in the nature of a scholarship should be processed through the Student Information System (SIS) using the departmental scholarship upload process. This allows the award to be included as part of students financial aid package, as well as IRS 1098T Tax Form reporting.

Account Code 5711 is the main account code campus currently uses for scholarship payments.