US citizen studying in Germany, receiving a German tax-free scholarship. Does this count as taxable foreign income?

[EMLon]

I am a US citizen, currently studying and living in Berlin. I am receiving a stipend/scholarship that is tax-free under German law. Must I report this as taxable foreign income under FINCEN / FBAR?

[PattiF]

It is taxable income in the US if the income exceeds educational expenses.

The qualified education expenses are 

• Tuition and fees required to enroll at or attend an eligible educational institution; and
• Course-related expenses, such as fees, books, supplies, and equipment that are required for the courses at the eligible educational institution. These items must be required of all students in your course of instruction.
• Housing expenses

If the scholarship is more than your educational expenses, the taxable income would be entered as Other Reportable Income.

• Go to Federal
• Then Wages and Income
• Scroll to Miscellaneous Income
• Then Other Reportable Income
• For Description enter "Taxable Scholarship"

[EMLon]

@PattiF  Thanks for the quick answer. Would an apartment that is outside of the university system qualify as a housing expense?

[PattiF]

After further research, the IRS does not allow housing as an expense. 

Expenses that don't qualify.

Qualified education expenses don't include the cost of:

Room and board,

Travel,

Research,

Clerical help, or

Equipment and other expenses that aren't required for enrollment in or attendance at an eligible educational institution.

@EMLon