Which payment(s) is(are) included in a recipient’s gross income?

Which payment(s) is(are) included in a recipient’s gross income?

I. Payment to a graduate assistant for a part-time teaching assignment at a university. Teaching is not a requirement toward obtaining the degree.

II. A grant to a Ph.D. candidate for his participation in a university-sponsored research project for the benefit of the university.
A . I only.
B. II only.
C. Both I and II.
D. Neither I nor II.

View Answer

Answer: C

Explanation:

Choice "c" is correct.

I. A payment to a student for a part-time teaching assignment is taxable income just as a payment for any other campus job would be. This is not a scholarship or fellowship.

II. There is no exclusion in the tax law for amounts paid to a degree candidate for participation in university-sponsored research.