Robbie receives a scholarship of $20,000 from an elite private college. $12,000 of the scholarship is earmarked for tuition, and $8,000 covers his room and board. How much of the scholarship, if any, is taxable to Robbie?
Introduction: A scholarship is a financial award given to a student to help them continue their education at a private elementary or secondary school, or at a private or public post-secondary college, university, or other academic institution. Scholarships are given out based on a variety of factors, including academic achievement, diversity and inclusion, athletic ability, and financial need, to name a few (or some combination of these factors). Scholarship criteria are typically based on the values and goals of the donor or founder.
While scholarship recipients are not required to repay their awards, they may be required to meet certain criteria while receiving assistance, such as maintaining a certain grade point average or participating in a specific activity (e.g., playing on a school sports team for athletic scholarship holders, or serving as a teaching assistant for some graduate scholarships). Scholarships can be monetary or non-monetary awards.
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