1098-T question when scholarship is greater than tuition paid

[carolynburns3]

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!

[Psychprof]

Room and board is not tax-exempt.  

https://www.cnbc.com/2019/03/11/you-might-owe-taxes-if-you-got-a-scholarship.html

[KrisD15]

The student would need to claim the 13,000 however don't forget about any books and supplies she may have needed to purchase which would not be included in Box 1 as tuition. Those expenses can be used to offset scholarship income.

Room and board can offset a 529 distribution (1099-Q) but not scholarships. 

@carolynburns3