Barney is a full-time graduate student at State University.He serves as a teaching assistant for which he is paid $700 per month for nine months and his $5,000 tuition is waived.The university waives tuition for all of its employees.In addition, Barney receives a $1,500 research grant to pursue his own research and studies.Barney's gross income from the above is:

Question

Quizplus · Accepted Answer

The $6,300 Barney earns as a teaching assistant is considered taxable income. The tuition waiver is not taxable because the university waives tuition for all its employees, making it a non-taxable benefit. The $1,500 research grant is also not taxable if it is used for qualified education expenses. Therefore, Barney's gross income from the above is $6,300.

Barney Is a Full-Time Graduate Student at State University