Q. Can I use room and board expenses (R&B) paid for by college scholarship?
A. No. You cannot use room and board expenses, even if not paid for by college scholarship, to claim the education credit. Furthermore, you cannot even claim room & board as qualified expenses for a scholarship to be tax free. R&B are not qualified educational expenses (QEE). That scholarship is considered taxable income to the student.
The one exception is that R&B are qualified expenses for a 529 plan/ESA/QTP distribution.
