Son rec'd 1098-T. Can I count all box 5 amt. for tuition & qualified ed. expenses? And none to room & board? Box 5 amt is < tuition & qualified ed expenses. Thanks!

[jwlipford]

Put differently, do IRS rules allow scholarships/grants to go to tuition & qualified ed. expenses 1st, so that amt. for room & board matters only if scholarships/grants are > tuition & qualified ed. expenses? (My son does stay on campus.)

[JulieH1 · Accepted solution]

Yes, you are exactly right.

It really does not matter unless scholarships are more than qualified expenses.

Scholarships/grants are applied to qualified education expenses first. The only qualified education expenses for a scholarship/grant are tuition, books, and lab fees.  After that, any excess scholarships/grants are taxable income to the student.