What is jennies taxable income from her scholarship

Assignment Help Taxation

Reference no: EM133608047

Problem

Jennie Annistunning is a full-time out-of-state junior student at GOhio University. Jennie's professors believe that she is an exceptional student with high potential for success. Accordingly, they awarded her a $26,500 scholarship to fully fund her senior year studies. Jennie is 19 years old, single, and is a dependent on her parent's tax return. Her only other income is a summer job that paid her $7,200. Jennie paid the following amounts relating to her final undergraduate year of education. (For simpliciy, assume that she received the scholarship and paid the amounts below all in one tax year.)

Ohio U. tuition	$15,400
Supplemental reference books and supplies for classes but not required by GOhio U.	$900
GOhio U. room & board for a residence hall single room	$10,600
Books and supplies required for coursework	$850
Lab fees required for coursework	$159
GOhio U. required General Fee	$1,200
Personal expenses (travel to/from home, enterntainment, etc.)	$4,500

What is Jennie's taxable income, if any, from her scholarship for the current year? Using only the Internal Revenue Code for primary authority, document your findings in a letter to Jennie. You need not worry about the header/address; secretarial assistants will do that for you. Use your research results to compute Jennie's after-tax cash flow from her scholarship. Ignore state income taxes.

Reference no: EM133608047

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