For each of the following situations, indicate how much the taxpayer is required
ID: 2420987 • Letter: F
Question
For each of the following situations, indicate how much the taxpayer is required to include in gross income: (Leave no answer blank. Enter zero if applicable.)
Steve was awarded a $8,900 scholarship to attend State Law School. The scholarship pays Steve's tuition and fees.
Hal was awarded a $16,200 scholarship to attend State Hotel School. All scholarship students must work 25 hours per week at the School residency during the term.
How much of scholarship is Steve required to include in his gross income?_________
For each of the following situations, indicate how much the taxpayer is required to include in gross income: (Leave no answer blank. Enter zero if applicable.)
Explanation / Answer
A. $0 is added in gross income as it is used to pay tuition and fees.
B. A scholarship recipients exclude from Gross income the scholarship proceeds used to pay for tuition, books and supplies.
$0 amount of scholarship Hal should include in Gross income if it is used in tution ,books and supplies. Otherwise the amount not used in tution, books and supplies will be added in gross income.
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