Jena is a full-time undergraduate student at State University and qualifies as a dependent of her parents. Her only source of income is a $10,000 athletic scholarship ($1,000 for books, $5,500 tuition, $500 student activity fee, and $3,000 room and board). Jena's gross income for the year is:

Question

Quizplus · Accepted Answer

Jena's gross income would be the total amount of her scholarship, which is $10,000. However, since $6,000 of that is allocated towards tuition, books, and student fees, her taxable income is only $4,000. Since she is a dependent, she cannot claim any personal exemptions or standard deductions, which would bring her gross income down to $3,000.

Jena Is a Full-Time Undergraduate Student at State University and Qualifies