what 'scholarship exception'? can you please direct me to that publication?
example:
1099-T - Box 1 = $10,000; Box 5 = $10,000 (the tuition was covered by the scholarship)
1098-Q - box 1 = $5000; box 2 = $1000
further assume $5000 of room and board expenses
$500 of the earning is taxable (because only half of the distribution was required to cover the Room and Board), and subject to the 10% penalty, right?
