- 10 - from gross income provided that the grant did not represent payment for teaching, research, or other services in the nature of part-time employment and as long as the recipient was a candidate for a degree. For individuals who were not candidates for a degree, the exclusion was limited to $300 per month for a maximum of 36 months. Sec. 117(b)(2)(B). TRA 1986 sec. 123, 100 Stat. 2112, modified the income tax treatment of scholarships and fellowship grants by making amendments to section 117. Section 117(a), as amended, excludes from gross income "any amount received as a qualified scholarship by an individual who is a candidate for a degree at an educational organization described in section 170(b)(1)(A)(ii)." The term "qualified scholarship" refers to "any amount received by an individual as a scholarship or fellowship grant to the extent the individual establishes that, in accordance with the conditions of the grant, such amount was used for qualified tuition and related expenses." Sec. 117(b)(1), as amended. The term "qualified tuition and related expenses" means (a) tuition and fees required for enrollment or attendance of a student at an educational organization described in section 170(b)(1)(A)(ii), and (b) fees, books, supplies, and equipment required for courses of instruction at such an educational organization. Sec. 117(b)(2), as amended. The amendments to section 117 eliminated the exclusion for individuals who are not degree candidates.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011