<p>The reason we would pay tax on the $890…</p>
<p>Out of $14603 scholarship, $7261 was spent on tuition and and $7342 on R&B.
So D will pay tax on the $7342
Which is scholarship (14603) minus total tuition cost (8151) = $6452 + 890 out of pocket = $7342.00 - Same difference, isn’t it? I saw other people doing it this way so that’s why I thought I had to add the $890.</p>
<p>I’m not sure what you are saying: add the $890 to the original tuition figure so when you subtract it doesn’t change the net amount.</p>