Question

jiang is enrolled in a part-time program at the local university, for which she paid $2,500 tuition fees. she paid $150 for books. she received a scholarship of $4000. how much of her scholarship is taxable income?

Answer 1

Jiang's taxable income from her scholarship is $1,350, which is the remainder after deducting her educational expenses of $2,650 from the total scholarship amount of $4,000.

Step-by-step explanation:

The question involves calculating the portion of Jiang's scholarship that is considered taxable income. Jiang paid $2,500 for tuition and $150 for books, while she received a $4,000 scholarship. Scholarship money used directly for tuition and necessary educational materials, such as books, is not considered taxable income.

Therefore, we subtract the total educational expenses ($2,500 + $150 = $2,650) from the scholarship amount ($4,000) to find the taxable portion of the scholarship.

$4,000 (scholarship) - $2,650 (tuition and books) = $1,350

The amount of Jiang's scholarship that is considered taxable income is $1,350.