Basic Federal Income Taxation: Gross Income: Scholarships

This lesson will guide users to understand those expenses that qualify under the designation of a scholarship, and regulations concerning exclusions, prizes, and other income for students. Questions review your understanding of Internal Revenue Code section 117.

Learning Outcomes

On completion of the lesson, the student will be able to:

1. Explain the application of § 117(a) to an individual's gross income.
2. Explain the application of § 117(d) to an employee's gross income.
3. Define "qualified tuition and related expenses."
4. Explain the effect of an employment condition on a conditional scholarship.