Ron,age 19,is a full-time graduate student at City University.During 2016,he received the following payments:
Cash award for being the outstanding resident adviser
$ 1,500
Resident adviser housing
2,500
State scholarship for ten months (tuition and books)
6,000
State scholarship (meals allowance)
2,400
Loan from college financial aid office
3,000
Cash support from parents
2,000
$17,400

Ron served as a resident advisor in a dormitory and,therefore,the university waived the $2,500 charge for the room he occupied.What is Ron's adjusted gross income for 2016?

Question

Ron,age 19,is a full-time graduate student at City University.During 2016,he received the following payments:
Cash award for being the outstanding resident adviser
$ 1,500
Resident adviser housing
2,500
State scholarship for ten months (tuition and books)
6,000
State scholarship (meals allowance)
2,400
Loan from college financial aid office
3,000
Cash support from parents
2,000
$17,400
​
Ron served as a resident advisor in a dormitory and,therefore,the university waived the $2,500 charge for the room he occupied.What is Ron's adjusted gross income for 2016?

Quizplus · Accepted Answer

Ron's adjusted gross income includes the cash award ($1,500) and the meals allowance from the scholarship ($2,400), totaling $3,900. The housing waiver, state scholarship for tuition and books, loan, and cash support from parents are not included in taxable income.

Ron,age 19,is a Full-Time Graduate Student at City University