Question

Brenda received a $15,000 college scholarship for the current year. She used the scholarship to pay the following fees: tuition $9,000 lab fees $60, parking fees $120, books $750, housing $4,000, and a meal plan $1,070. What can she exclude from gross income?

a. $60 lab fee
b. $4,000 housing
c. $120 parking fees
d. $1,070 meals
e. $9,000 tuition
f. $750 books

Answer 1

Brenda can exclude $9,000 tuition from her gross income as it qualifies as a qualified higher education expense.

Step-by-step explanation:

To determine what Brenda can exclude from gross income, we need to identify which expenses qualify as qualified higher education expenses. According to the IRS, qualified higher education expenses include tuition and fees required for enrollment. Therefore, Brenda can exclude $9,000 tuition from her gross income. Lab fees, parking fees, housing, meal plan, and books are not considered qualified higher education expenses, so they cannot be excluded from gross income.