Vanessa Lazo was an amazing high school student and so it was no great surprise when she was accepted into Berkeley College. To entice Vanessa to attend Berkeley, the college offered her a reduced tuition of $13,000 per year (full-time tuition would typically be $43,000 per year). Berkeley also has a scholarship program thanks to a donation from William Gatos. Vanessa was the Gatos Scholarship winner and will receive a scholarship for $20,000. Vanessa will use the scholarship first to pay the $13,000 tuition and the remainder to cover room and board at Berkeley. Lastly, Berkeley also offered Vanessa a part-time job on campus as a lab assistant in the tech department for which she is paid $1500. Required: Go to the IRS website (www.irs.gov) and locate Publication 970. Review the section on Scholarships. Please let us know how much of the package is taxable.
Vanessa Lazo was an amazing high school student and so it was no great surprise when she was accepted into Berkeley College. To entice Vanessa to attend Berkeley, the college offered her a reduced tuition of $13,000 per year (full-time tuition would typically be $43,000 per year). Berkeley also has a scholarship program thanks to a donation from William Gatos. Vanessa was the Gatos Scholarship winner and will receive a scholarship for $20,000. Vanessa will use the scholarship first to pay the $13,000 tuition and the remainder to cover room and board at Berkeley. Lastly, Berkeley also offered Vanessa a part-time job on campus as a lab assistant in the tech department for which she is paid $1500.
Required: Go to the IRS website (www.irs.gov) and locate Publication 970. Review the section on Scholarships. Please let us know how much of the package is taxable.
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