Nicole is a student at USB Law School; she receives a $52,000 scholarship for 2018.Of the $52,000, $40,000 is used for tuition, $5,000 is used for books, and $7,000 is used for room and board.How much of the scholarship is excluded from taxable income for Nicole in 2018?

Question

Quizplus · Accepted Answer

The scholarship exclusion is limited to the amount of qualified expenses incurred. In this case, the qualified expenses are tuition, books, and room and board. The total amount of qualified expenses is $40,000 + $5,000 + $7,000 = $52,000. Therefore, the entire amount of the scholarship is excluded from taxable income.

Nicole Is a Student at USB Law School; She Receives