For each of the following situations, indicate how much the taxpayer is required to include in gross income:
a.Steve was awarded a $5,000 scholarship to attend State Law School. The scholarship pays Steve's tuition and fees.
b.Hal was awarded a $15,000 scholarship to attend State Hotel School. All scholarship students must work 20 hours per week at the School residency during the term.
c.Bill was the recipient of an athletic scholarship that pays his $12,000 tuition to State University and provides him with a $500 per month stipend to pay for food and housing. The scholarship requires Bill to participate in athletic competition each term.
a. How much of scholarship is Steve required to include in his gross income?
Amount to be included:
b. What is the amount of scholarship Hal should include in his gross income?Amount to be included:
c. How much of scholarship and stipend (for 12 months) are to be included in Bill's gross income?
- Amount of scholarship to be included:
- Amount of stipend to be included: