Hal_Al
Level 15

Education

Simple answer: yes.  The fact that she is also getting "funds  for living expenses" doesn't matter because  she reports it as income.  So, there is no double dipping of tax benefits.  Taxable scholarship is hers to spent anyway she wants. 

 

The definition of qualified education expenses is somewhat  different for grad students and undergrads as applies to the tuition credits.  But for 529 plan distributions, the rules are the same.