Agnes receives a $5,000 scholarship which covers her tuition at Parochial High School.She may exclude the $5,000 scholarship she received although the scholarship is to attend a private high school.

Question

Quizplus · Accepted Answer

According to IRS Publication 970, scholarships used to pay for tuition, fees, books, and supplies are generally tax-free, even if the beneficiary attends a private educational institution. So, Agnes can exclude the $5,000 scholarship from her taxable income.

Agnes Receives a $5,000 Scholarship Which Covers Her Tuition at Parochial