Shaun is a student who has received an academic scholarship to State University. The scholarship paid $14,000 for tuition, $2,500 for fees, and $1,000 for books. In addition, Shaun's dormitory fees of $8,500 were paid by the University when he agreed as a condition of receiving the dormitory fees to counsel freshman on campus living. What amount must Shaun include in his gross income?

Question

Quizplus · Accepted Answer

The $8,500 for dormitory fees must be included in Shaun's gross income because it was a payment for services rendered (counseling freshmen), which is taxable. The other amounts are qualified scholarships and are not included in gross income.

Shaun Is a Student Who Has Received an Academic Scholarship