KrisD15
Expert Alumni

Education

The scholarship that paid tuition (and fees and books and school supplies) no. 

Any scholarships used for room and board, yes. 

 

Scholarships used for tuition, fees, books and school supplies are tax free, but scholarships used for room and board are taxable.

 

He should have gotten Form 1098-T which shows expenses and scholarships and can be used in the TurboTax programs. 

 

Additionally, the student can claim scholarships as income to "free-up" expenses to use for an education credit if that is advantageous to the Taxpayer claiming the dependent student. 

 

IRS Pub 970

 

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