What he used the proceeds for from selling the stock has absolutely no effect on it's taxability or reportability. However, as a student he "MAY" qualify for some education credits, regardless of where the money came from. Do be aware however that in order for one to get education credits, they must have paid qualified eduction expenses with *EARNED* income that was earned in the same tax year they are paying the credit. Stock sale proceeds are investment income, not earned income. So I don't know if that will count for anything or not. I suspect not.