How to file for full scholarship

[jsmislay]

My son is filing as a dependent.  He has a full scholarship (tuition/room & board etc.).  I am unsure how to report that information.  The Univiersity did NOT send any forms.  I read that tuition fees are non-taxable.  When entering the scholarship amount, do I just put in the total scholarship MINUS the tuition/fees?  That is essentially room and board.  If I place the total scholarship amount, the taxes calculated seems high (and nowhere does it ask for tuition and fee costs).

Any ideas how to proceed?

[Hal_Al]

The school should have sent you a form 1098-T. Many schools no longer mail out the 1098-T.  You obtain it at the  student's account on line. 

That said, you need to report the taxable scholarship on the student's return, regardless of the 1098-T. 

Q. When entering the scholarship amount, do I just put in the total scholarship MINUS the tuition/fees?  

A.  Yes. You may also subtract the cost of books and a required computer. 

Scholarships that pay for "Qualified Educational expenses (QEE) (tuition, fees and "course materials") are tax free.  Scholarships that pay for room and board and other non qualified expenses are taxable. 

When the TurboTax (TT) interview asks how much of the scholarship was used for room and board, enter the entire net amount (total scholarship minus qualified expense, tuition fees and course materials).   You must tell TT how much you want taxable by saying it was used for room &board.  Note the wording at that screen “or other expenses”. You didn’t have to literally use that much scholarship for R&B.

[JillS56]

Do not report anything if he is on a full scholarship.   If you do not have a 1098-T then you do not have to report anything.  

Scholarships are not currently considered taxable income so long as the funds are used to pursue a degree and to pay for tuition, fees, and "qualified education expenses." Those expenses include books and supplies that are required for a program of study.  Your scholarship or fellowship is tax-free if you are a full-time or part-time candidate for a degree at an eligible educational institution. 

The exclusion from scholarships of the room and board pertains to the AOTC credit.   Since you are not seeking an educational credit, then you do not have to be concerned with that calculation.    As long as the amount of the scholarship covers all of his tuition, fees, books, room and board, then he does not have to report any of it as taxable.

[Hal_Al]

From IRS Publication 970:

A scholarship or fellowship grant is tax free only to the
extent:
• It doesn't exceed your qualified education expenses;
• It isn't designated or earmarked for other purposes
(such as room and board), and doesn't require (by its
terms) that it can't be used for qualified education expenses; and
• It doesn't represent payment for teaching, research, or
other services required as a condition for receiving the
scholarship.

Qualified education expenses. For purposes of
tax-free scholarships and fellowship grants, these are expenses for:
• Tuition and fees required to enroll at or attend an eligible educational institution; and
• Course-related expenses, such as fees, books, supplies, and equipment that are required for the courses
at the eligible educational institution. These items

must be required of all students in your course of instruction.
Expenses that don't qualify. Qualified education expenses don't include the cost of:
• Room and board,
• Travel,
• Research,
• Clerical help, or
• Equipment and other expenses that aren't required for
enrollment in