Question

Isabell (21) is a fulltime student pursuing a degree at her state college. She received a $7000 unrestricted scholarship report on Form 1098T rather than a W2. She spent $5500 of her scholarship funds on her tuition. She applied thr $1500 on room and board. She also had income from a part-time job and required a tax return. Hoe does she report the scholarship on her 1040.

A None of her scholarship in included taxable income or reported on her return.

B She should enter "SCH" and $1500 on the dotted l;ine next to line 1 on form 1040

C She should enter "SCH" and $1500 on the dotted line next to line 4 on schedule of 1040

D She should enter "SCH" and $7000 on the dotted line next to line 8 schedule 1 of 1040

Answer 1

Answer:

B She should enter "SCH" and $1500 on the dotted l;ine next to line 1 on form 1040.

Because of Amounts that are used for room and board, medical expenses ,transportation and other living expenses are taxable.