The taxpayer is a Ph$.$D$.$ student in accounting at City University. The student is paid $$1,500$ per month for teaching two classes. The total amount received for the year is $$13,500.$

The $$13,500$ is excludible if the money is used to pay for tuition and books.

The $$13,500$ is taxable compensation.

The $$13,500$ is considered a scholarship and, therefore, is excluded.

The $$13,500$ is excluded because the total amount received for the year is less than her standard deduction and personal exemption.