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The taxpayer is a Ph. D. student in accounting at City University. The student is paid $1,500 per month for teaching two classes. The total amount received for the year is $13,500. a. The $13,500 is considered a scholarship and, therefore, is excluded. b. The $13,500 is excluded because the total amount received for the year is less than her standard deduction and personal exemption. c. The $13,500 is taxable compensation. d. The $13,500 is excludible if the money is used to pay for tuition and books.
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The taxpayer is a Ph. D. student in accounting at City University. The student is paid $1,500 per mo...
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