In December 2014,Emily,a cash basis taxpayer,received a $2,500 cash scholarship for the Spring semester of 2015.However,she did not use the funds to pay the tuition until January 2015.Emily can exclude the $2,500 from her gross income in 2014.

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Emily can exclude the $2,500 from her 2014 gross income,as the $2,500 is used to pay tuition for the Spring semester of 2015.

In December 2014,Emily,a Cash Basis Taxpayer,received a $2,500 Cash Scholarship