You reference a 1099-Q. Monies reported on a 1099-Q is treated entirely different than a grant or scholarship. That's because scholarships can only be used for the qualified education expenses of tuition, books, and lab fees. Whereas 1099-Q funds can be used for the same "AND" for room and board so long as that room and board is directly in support of the education.
When you have a 1099-Q it is extremely important to work through the education section the way it was designed and intended to be used. If you do not, then chances are high that you will not be asked for room and board expenses. Then the "excess" 1099-Q funds are taxable income to the student, subject to being taxed at the parent's tax rate - which is sometimes higher.
