In determining whether the gross income test is met for dependency exemption purposes, only the taxable portion of a scholarship is considered.

Question

Quizplus · Accepted Answer

Only the taxable portion of a scholarship is considered for determining whether the gross income test is met for dependency exemption purposes. Non-taxable portions of scholarships, such as amounts used for tuition and course-related expenses, are not included in Gross Income.

In Determining Whether the Gross Income Test Is Met for Dependency