Q. Does the California Middle Class Scholarship allow you to cover room and board expenses tax-free?
A. No. No scholarship is tax free if allocated to room & board (R&B).
Q. Can I report the additional California Middle Class Scholarship money that exceeds my qualified educational expenses (QEE) as taxable income?
A. Yes. You can and must report scholarships as taxable income if they were not covered by QEE. That is usually the best strategy, bur there is a limit depending on the student's other income.
Your post asks about R&B and scholarships and 529 funds but not the tuition credit?
