Is there free lunches?

<p>Xiggi:</p>

<p>I’m sorry if I’m being obtuse, but we’re new to this game.</p>

<p>Let’s suppose that D receives scholarship from State U to cover tuition, fees and some books. Then suppose she goes out and gets a corporate scholarship that will cover almost all but not all of the cost of room and board. Is the corporate scholarship subject to taxes?</p>

<p>Thanks for your answer!</p>