asked 196k views
3 votes
Betty received a graduate teaching assistantship that was awarded on the basis of academic achievement. The payments must be included in her gross income.

A. True
B. False

asked
User Davost
by
8.6k points

1 Answer

3 votes

Final answer:

Payments from graduate teaching assistantships awarded based on academic achievement are generally taxable and must be included in gross income, unless they are specifically earmarked for educational expenses.

Step-by-step explanation:

The question you're asking pertains to whether the payments received by Betty for her graduate teaching assistantship, which was awarded on the basis of academic achievement, must be included in her gross income. According to tax law, stipends or payments received from teaching assistantships are generally considered taxable income unless they are specifically earmarked for tuition, fees, books, supplies, or equipment required for the students' courses. As these payments seem to be compensation for services, the answer here is True. They must be included in Betty's gross income.

answered
User Vadim Shender
by
8.6k points
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