My student’s scholarships were $9830 for 2024, while tuition fees were $4851. That results in $4979 that I can apply to room and board costs. The problem is, this only results in reducing my tax liability and I’m still due to pay $72 as federal taxes, according to TT.
However, if I increase the amount of scholarship monies to $8700 to use for room and board, then I am due a refund of $2026. My student then has to declare this as income on his tax return. Is it acceptable/legal to apply most of the scholarship monies to room and board, assuming the scholarships ( Pell etc) allow the monies to be used for tuition and room and board?
Thanks!
English Mom2025.
