In general, scholarship/fellowships that originate from sources outside the United States are not taxable or reportable to tax nonresidents. Revenue ruling 89-67 describes the source of the payment is determined by the "residence or the payor" not the location of the educational activity.
Non-Chapter 21 Contract – A contract for a specific term that does not include rights under Chapter 21. The contract and district policy sets the terms and conditions of this contract.
Stipends are considered taxable income by the IRS if they don't belong in the pre-tax or non-taxable categories. Companies must list the benefits on employees' W-2 forms and withhold state and federal taxes ingly.