<p>keep in mind that you, the parent, will not be paying the tax for the earnings portions of excess withdrawals up to the amt of scholarships/grants. That amount will go as income on your CHILD’S tax return. depending on how high the earnings are and how much other income your child had/has for the year, no tax may be owed at all - and at least your child is likely to be in a lower tax bracket than you.</p>