Question

Eddie (age 20) is an undergraduate student at UGA. Eddie works hard for his good grades. For 2020, Eddie received $18,000 of scholarship income. His total tuition and fee expenses were $10,200. Eddie also paid housing and meal plan costs of $12,000 for the year. Eddie is claimed by his parents. Eddie had no other taxable income for the year. What, if any, is Eddies taxable income? at

Answer 1

Your scholarship may or may not be taxable. Generally speaking, a scholarship or fellowship is tax free if you are a degree candidate and the award is used to pay for tuition and required fees, books, supplies and equipment, however there are some scholarship and fellowship opportunities that are not tax exempt. Any amount used to pay for room and board or a stipend for living expenses is taxable. There are also a variety of coordination restrictions that are intended to ensure that you don’t double-dip when taking advantage of the Education Tax Benefits.

Total scholarship income 18000

Assuming tution fees is paid out of it 10200

Remaining = 7800 is taxable

Also assuming that remaining of the meal cost have been given by the parents as edli is claimed by his parents.