Shaun is a student who has received an academic scholarship to State University. The scholarship paid $22,800 for tuition, $5,200 for fees, and $1,770 for books. In addition, Shaun's dormitory fees of $13,400 were paid by the university when he agreed to counsel freshman on campus living. What amount must Shaun include in his gross income?

Question

Quizplus · Accepted Answer

The amount Shaun must include in his gross income is the dormitory fees of $13,400. According to IRS guidelines, scholarships that cover tuition, fees, and books are not taxable. However, payments for services, such as counseling, are considered taxable income.

Shaun Is a Student Who Has Received an Academic Scholarship