QUESTION 19

Sam received a scholarship (full-ride) for college. However, in order to receive this scholarship, he must work at the bookstore for at least 20 hours a week. Is any of this scholarship taxable? If so, how much?

 a. scholarships, by definition, are excluded from income

 b. Sam must include the room and board as income, but can exclude all of the college-related expenses (tuition, fees, books) part of the scholarship

 c. the amount of the scholarship that pays college-related expenses is excluded; however, room and board are included in income

 d. because Sam must provide services, the entire scholarship is included in income