$10,000 is what is included in the 529 distribution. $7000 is for on-campus univ R&B in Fall, and $3000 for meals expense in Spring/Summer when the housing was closed for Covid, she studied from home and also from her friends house off campus at the college.
$7000 income is not included in the scholarship in Box 5. It is in a separate w-2. They can be considered as earned income.
And, thanks for helping.
