Question

Dale is a degree candidate at a state university. He received a $3,500 unrestricted scholarship from...

Dale is a degree candidate at a state university. He received a $3,500 unrestricted scholarship from a local civic organization. How much of Dale's scholarship is taxable?

$0

$3,500

The portion that exceeds his room and board expenses.

The portion that exceeds his tuition and book expenses.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Ans:

In case Unrestricted scholarships is received by a degree candidate. The amount received will be considered as completely tax free subject to a condition that the amount is spent for the tution fees and books expenses. Any amount used for room and board expenses will be taxable.

So correct answer is Option D.

The portion that exceeds his tuition and book expenses will be taxable.

For any query please ask in comment box, we are happy to help you. Also please don't forget to provide your valuable feedback. Thanks!

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Jarrod receives a scholarship of $35,200 from East State University to be used to pursue a...
Jarrod receives a scholarship of $35,200 from East State University to be used to pursue a bachelor's degree. He spends $21,120 on tuition, $1,760 on books and supplies, $7,040 for room and board, and $5,280 for personal expenses. How much may Jarrod exclude from his gross income?
Taxpayer, age 19, is a full-time graduate student at State University. During 2017, he received the...
Taxpayer, age 19, is a full-time graduate student at State University. During 2017, he received the following payments: Income from college financial aid office $ 1,500 Resident adviser housing 2,500 State scholarship for ten months (tuition and books) 6,000 State scholarship (meals allowance) 2,400 Cash award for being the outstanding resident adviser 3,000 Cash support from parents 2,000 $17,400 Taxpayer served as a resident adviser in a dormitory and, therefore, the university waived the $2,500 charge for the room he...
Advanced Scenario 1: Aiden Smith Interview Notes • Aiden is 19 years old, unmarried, and was...
Advanced Scenario 1: Aiden Smith Interview Notes • Aiden is 19 years old, unmarried, and was a first-year full-time student working on a degree in accounting during 2018. He has never had a felony drug conviction. • Aiden did not provide more than half of his own support and can be claimed as a dependent by his mother. • Aiden’s income was $4,000 in wages working as a part-time cook at a fast food restaurant. • Aiden received Form 1098-T...
Michael just graduated with a degree in Accounting from State University. He worked hard in school...
Michael just graduated with a degree in Accounting from State University. He worked hard in school but could only achieve a 2.95 GPA because he worked 40 hours a week to pay hi sown way through college. Unfortunately, Michael was unable to get a job because the recruiters all had a 3.0 GPA cut-off point. Michael stayed with his college job for another year but is anxious to start his public accounting career. One day he reads about a job...
Question 6:Roger, age 19, is a full-time graduate student at State College. During 2018, he received...
Question 6:Roger, age 19, is a full-time graduate student at State College. During 2018, he received the following payments. What is his taxable income: State scholarship for ten months (tuition and books) $3,600 Loan from college financial aid office 1,500 Cash support from parents 3,000 Cash prize awarded in contest 500 $8,600 Group of answer choices $8,600 $500 $2,900 $4,100 ******************************************************************* Question 8: Early in the year, Mike was in an automobile accident during the course of his employment. As...
A professor has two daughters that he hopes will one day go to college. Currently, in-state...
A professor has two daughters that he hopes will one day go to college. Currently, in-state students at the local University pay about $21,576.00 per year (all expenses included). Tuition will increase by 3.00% per year going forward. The professor's oldest daughter, Sam, will start college in 16 years, while his youngest daughter, Ellie, will begin in 18 years. The professor is saving for their college by putting money in a mutual fund that pays about 8.00% per year. Tuition...
Ben Ofosu graduated from college six years ago with a finance undergraduate degree. Although he is...
Ben Ofosu graduated from college six years ago with a finance undergraduate degree. Although he is satisfied with his current job, his goal is to become an investment banker. He feels that an MBA degree would allow him to achieve this goal. After examining schools, he has narrowed his choice to either GIMPA or UGBS. Although internships are encouraged by both schools, to get class credit for the internship, no salary can be paid. Other than internships, neither school will...
Julie lost a hand in a car accident (on her own fault) that caused her to...
Julie lost a hand in a car accident (on her own fault) that caused her to miss work for 6 months. The car accident was unrelated to her work. The accident and health insurance policy was purchased (carried) by Julie’s employer. The premiums paid by Julie’s employer were $2,000. Julie received $6,000 on an income replacement policy purchased by Julie’s employer. Finally, Julie collected $30,000, a payment for loss of a hand, according to the insurance policy. How much should...
Matt and Carrie are married, have two children, and file a joint return. Their daughter Katie...
Matt and Carrie are married, have two children, and file a joint return. Their daughter Katie is 19 years old and is a full-time student at State University. During 2017, she completed her freshman year and one semester as a sophomore. Katie’s expenses while she was away at school during the year were as follows: Use Tax Rate Schedule for reference.     Tuition $ 5,020 Class fees 305 Books 505 Room and board 4,510 Katie received a half-tuition scholarship that...
All answers must follow New York State tax laws. David Miller (age 34, SSN 846-66-7922) and...
All answers must follow New York State tax laws. David Miller (age 34, SSN 846-66-7922) and his wife, Emily Miller (age 33, SSN 234- 56-7891), reside at 293 E. Main Street in Sterling, MA, 01564 with their two children whom they fully support: Catherine (age 13, SSN 397-73-8399) and Michael (age 11, SSN 397-73-8566). During the year, Emily worked full-time as a customer service representative at a local bank and earned $37,600. Her employer withheld the following from her wages:...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT