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Education
It depends. If the scholarship was used for qualified education expenses, then it would not be taxable and does not have to be reported. In addition to tuition, this would include supplies, books, and any fees that are necessary for attendance. It would not include room and board or travel.
If you would be eligible for an education tax credit and your child has room and board expenses, you can use the scholarship money to pay for room and board. This would make that portion of the scholarship taxable, but it would free up tuition expenses that would otherwise have been paid by the scholarship. You can then apply those tuition expenses towards an education tax credit. Although you would be paying tax on the scholarship, the benefit of the education tax credit usually is greater than the tax you pay on the scholarship.