Laura is a student at a state university. In 2018, she received a scholarship of $6,000 for tuition and fees and an assistantshi

Question

lidiya [134]

4 years ago

5

Laura is a student at a state university. In 2018, she received a scholarship of $6,000 for tuition and fees and an assistantshi

p for $3,000. What is the amount that Laura must report in income?
a. $9,000.
b. $0.
c. $3,000.
d. $6,000.

Business

1 answer:

lidiya [134] · Answer 1 · 2021-12-07T05:08:42+03:00

Answer: c. $3000

Explanation:

The amount Laura is required to report income is $3000 from her assistantship as this is regarded as a form of salary. While most of the income one earns through work or investments is required to be reported and are subject to federal income tax in some instances, certain categories of income that the government doesn't tax such as money from qualified scholarships. This is the reason the $6000 is not included in income. However, if some portions are used to pay for accommodation or personal expenses, that portion is usually reported.