Education

Scholarships in excess of tuition are taxable income to the student that had the scholarship.   That should be on line 1 of the students tax return with SCH next to it.   Scholarship are the students income and not the parents.

 

If the 20K 529 paid the institution then the scholarship would be a taxable excess.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**