Taxable scholarships?

[Mike or Penny Novack]

>
> Ah, OK, this makes sense. I was kinda hoping that there would be 
> something in the tax options that would cause this to be figured 
> automatically (i.e. so it would update itself if I corrected a 
> mis-categorized expense or something), but this will suffice, at least 
> for now.  Thank you for the advice.

I'm not at all sure what you mean by this. In what way (except for the 
final manual adjustment) would what I suggested not be "automatic"?

Say you had miscategorized a book purchase. You spent $100 in the book 
store and (initially) initialally entered that in the "textbook expense" 
account. Later you realized that this was an error, only $80 of that 
purchase was for allowed text books but $20 was for a book you bought to 
give as a present. So you enter a correction transaction (best practice 
in accounting; do not delete anything once entered) transferring $20 
from "textbook expenses" to "personal books expense". The balance in 
"textbook expense" WILL automatically correct the balance of that account.


Michael