"ritagoldberg" <ritagold[at]gmail.com> wrote:

- quote -

Generally, scholarships are tax-free to the extent they are
applied to qualified educational expenses. However, you
need to keep in mind one important fact: accountable plan
rules DO NOT APPLY to an individual who is not your
employee.

Crystal

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I am involved in creating a fellowship at a private college,
to be awarded yearly to an area language teacher for
research and/or course work abroad, probably during the
summer. We expect the person to submit a full expense
report, collaborate with the appropriate on campus
department in presentations and other activities, and
possibly mentor one or several students.

Under what circumstances could this fellowship be tax free?
What if the teacher enrolls in a program of study? Travels
and gathers teaching materials? If the grant itself is not
tax free, can any of the person's expenses be deducted?

Thanks for any advice...

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >