Contributed services and accommodations refer to various forms of support received by individuals as part of a scholarship or fellowship grant. This includes services such as room, board, and laundry, among others. Essentially, these are non-cash benefits provided to help individuals pursue their educational or research goals.
This term is primarily used in the context of tax law, particularly when discussing the tax implications of scholarships and fellowships. It falls under income tax regulations, where the IRS outlines how these benefits are treated for tax purposes. Understanding contributed services and accommodations can help individuals navigate their tax responsibilities when they receive such benefits.
Here are a couple of examples of abatement:
For instance, a student receiving a scholarship that covers their housing costs and provides a meal plan is receiving contributed services and accommodations. Another example is a research fellow who gets free access to laboratory space and equipment as part of their grant (hypothetical example).
Contributed services and accommodations are defined under 26 CFR 1.117-3, which outlines the tax treatment of scholarships and fellowships. This regulation specifies how these benefits should be reported for tax purposes.
| Term | Definition | Key Differences |
|---|---|---|
| Scholarship | A financial award given to a student based on academic or other achievements. | Scholarships typically provide cash or tuition support, while contributed services and accommodations include non-cash benefits. |
| Fellowship | A program that provides financial support for advanced study or research. | Fellowships may include contributed services and accommodations as part of their benefits package. |
If you receive contributed services and accommodations, it's important to understand how these benefits affect your taxes. Keep detailed records of the value of the services you receive. You may want to consult a tax professional for personalized advice. Additionally, you can explore US Legal Forms for templates and resources that can help you manage your tax obligations.
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It depends on the total value of the benefits received and the specific circumstances. Consult a tax professional for guidance.