My son is a full time student who receives scholarships that account for about half of his tuition and expenses each year. In prior college years he lived on campus and 100% of the scholarship went toward tuition plus room and board and we paid the difference from his 529 account.
For 2025 he lived off campus and paid rent directly to the apartment complex. The scholarship covered more than his tuition expenses so they sent him a check to cover the difference, which we used toward his rent.
There is a question in turbotax desktop asking if we received a refund of qualified education expenses. Not sure how to answer that since we got a check from the school for the scholarship balance after tuition was covered.
Thanks-
C