Which scenario would generally require the reporting of "other income" on a tax return?

The reporting of "other income" on a tax return typically applies to income types that do not fit into more common categories. In this case, receiving a grant for educational expenses generally qualifies as a scholarship or fellowship, which has specific tax rules. Similarly, interest earned on a savings account is considered ordinary taxable income and reported as interest income. Selling stock for a profit results in capital gains, which are categorized separately from other income.

On the other hand, when a taxpayer has a debt canceled, it can be considered other income under tax laws. The reason is that, when a debt is canceled, the taxpayer is effectively receiving a financial benefit, as they are relieved from the obligation to repay that amount. This benefit is generally taxable unless specific exceptions apply, such as being insolvent at the time of cancellation.

Thus, the scenario involving the cancellation of debt aligns with the definition of "other income," making it the correct answer in this context.