@weirjenn all scholarship income is taxable income TO THE STUDENT.
from that any "qualified educational expenses" (QEE) can be used to reduce that taxable income dollar for dollar. The college will list all their QEE in Box 1 of Form 1098-T
Generally, QEE is any expense needed for the classes, i.e., tuition, books, equipment, etc.
Room and board, activity fees, parking, etc. are not QEE, so it can't be deducted from the scholarship income.
does that help?
