There are some great examples in IRS Pub 970.
If there are restrictions on scholarships, those restrictions need to be met.
Some aid, such as Employer Reimbursement, the GI Bill, or VA Assistance cannot be claimed as taxable.
Distributions can be made to the school, but allocated elsewhere, such as to Room and Board, for tax reporting.
Pub 970 is not difficult to understand and has some good advice as well as explaining tax law.
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