My daughter is on an ROTC scholarship. The scholarship exceeds the tuition by about $13,000. The majority of the excess ($11,000) goes to pay room and board (she never "sees" this money, the university takes it before it goes into her student account). The remaining $2000 is a stipend use for living expenses.
Do we claim the entire excess ($13,000) as taxable income or only the portion she actually gets to spend ($2,000)?
Thanks in advance!