Final answer:
Yes, scholarships are generally excluded from gross income for degree candidates, even if they cover required fees and books in addition to tuition. Scholarships that are used for qualified tuition and related expenses are considered tax-free.
Step-by-step explanation:
Yes, scholarships are generally excluded from gross income for degree candidates, even if they cover required fees and books in addition to tuition. Scholarships that are used for qualified tuition and related expenses, such as fees, books, and supplies, are considered tax-free. This means that the scholarship amount does not need to be included as part of the student's taxable income.
For example, if a student receives a scholarship that covers tuition, fees, and books, the entire amount would be excluded from the student's gross income. However, if the scholarship amount exceeds the qualified expenses, the excess portion may be subject to taxes.
It's important to note that the tax treatment of scholarships may vary depending on the specific circumstances and the laws of your country. It's always a good idea to consult with a tax professional or refer to official tax guidelines for accurate and up-to-date information.