My oldest attends college out of state. His grants and scholarships covered his tuition, dorm, and meal plan except for about $300 each semester that he paid out of pocket.
After finishing his taxes, it looks like he owes money. They are considering the amount of scholarships that went to his dorm as income because it is not a "qualified educational expense." This university does not require its students to live on campus in a dorm, which is probably the reason.
If it is not an educational expense, could he claim it as rent paid? and if he does that, would he file it under our home state, or the state where he attends school? Is there another option I'm not considering?
Thanks in advance!
