Yes, grants and /or scholarships are taxable income to the extent that
they exceed qualified educational expenses to include tuition, fees, books, and
course related materials.
If the
scholarships/grants exceed the qualified education expenses, then the student
will report the 1098-T and all other educational expenses and
scholarships/grants on the student’s tax return.
The student
will pay taxes on the amount of scholarships/grants that are not used for
qualified education expenses.
However, if
the student’s earned income reported on a W-2, when added to the excess scholarships/grants
does NOT exceed $6,300, then the student doesn’t even need to file a tax
return, and nothing has to be reported.
https://ttlc.intuit.com/questions/2732554-i-claim-my-son-as-a-dependent-he-has-a-taxable-scholarship...
Be sure to enter all Qualified Education Expenses
