Question
Heidi received a scholarship of $2,500. The scholarship was not received under either the National Health Service Corps Scholarship Program or the Armed Forces Health
Heidi received a scholarship of $2,500. The scholarship was not received under either the National Health Service Corps Scholarship Program or the Armed Forces Health Professions Scholarship and Financial Assistance Program. As a condition for receiving the scholarship, Heidi must serve as a part-time teaching assistant. Of the $2,500 scholarship, $1,000 represents payment for teaching. The provider of her scholarship gives Heidi a Form W-2 showing $1,000 as income. Her qualified education expenses were $2,000. Assuming that all other conditions are met, what portion of Heidis scholarship is taxable? A. $0 B. $500 C. $1,000 D. $2,000
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