Q. Can someone tell me does the scholarship covers book costs?
A. Simple answer: yes.
As the other replies indicate, a definitive answer depends on the terms of the scholarship. It would be unusual for a student not to be able to use scholatships for books and other "course materials," inckuding "book analysis". As for tax rules, Scholrships money is tax free to the student if used for "Qualified educational espenses".
Per IRS Publication 970, For purposes of tax-free scholarships and fellowship grants, Qualified education expenses. are expenses for:
• Tuition and fees required to enroll at or attend an eligible educational institution; and
• Course-related expenses, such as fees, books, supplies, and equipment that are required for the courses
at the eligible educational institution. These items must be required of all students in your course of instruction.
Although "book analysis"may not be "required of all students", a text book usually is. I'm of the opinion that "book analysis" is an acceptable sustitute.
