<p>*So… digging a bit deeper… U of Alabama, being one of the universities that are generous to national merit finalists, offers pretty much a full ride. However, I still count:</p>
<ul>
<li>room and board is taxable income, which means probably $500 a year in income tax.</li>
<li>books and supplies are estimated around $1000 a year.</li>
<li>if we can come up with a car for her somehow (not sure how), gasoline for 4 trips home per year would be around $600.</li>
<li>etc.*</li>
</ul>
<p>NO… the income is not added to YOUR income**. It is the child’s income. **My son has the NMF from Bama and he’s never earned enough to pay any tax on his scholarships.</p>