ROTC scholarships and the service academies are specifically exempted from taxation in the tax code. So the scholarship and the monthly stipend student-cadets receive from ROTC are usually exempt from tax.
ROTC scholarships usually only covers tuition, fees and course materials (books). It sounds like you have other scholarships, in addition to ROTC. There is an option, in the ROTC program, for you to choose the ROTC scholarship to be for room and board, if you already have other scholarships paying tuition. I can find no source saying that the ROTC scholarship is still tax free in that situation. In fact, most sources infer that it is taxable (
http://www.ehow.com/info_8747258_tax-treatment-rotc-payments.html).
(Answer revised)
