Hal_Al
Level 15

Education

For the $4200 income test (#3), only the taxable portion of scholarship counts as income. The portion of the scholarship that went to tuition, fees and books (and other course materials) is not income.

 

The entire scholarship amount counts as support not provided by you for the support test (#4).

 

The IRS has a worksheet that can be used to help with the support calculation. See: http://apps.irs.gov/app/vita/content/globalmedia/teacher/worksheet_for_determining_support_4012.pdf The support value of a home is the fair market rental value, divided by the number of occupants.