My mother-in-law wrote a check to my daughter's college as a gift to help pay for her tuition. Because this resulted in an overpayment (between other funding sources including a small scholarship and a 529 payment), the college refunded the excess to my daughter and sent her a 1099-MISC. Does my daughter report this as ordinary income on her tax return? Can she offset the tax hit by designating it for room/board expenses (which she currently does not deduct at all)?
