<p>my son's scholarship provides tuitions, room and board. I think the room and board is taxable income. Can anyone verify this? I imagine it would be reported on my son's tax return. thanks for any help...and good luck to all</p>
<p>Yes the room and board will be taxable income which should be reported on your son's tax return. Your son should receive a 1098T from the school which will list expenses paid and scholarships received. The IRS publication for education tax benefits is IRS 970.</p>
<p><a href="http://www.irs.gov/pub/irs-pdf/p970.pdf%5B/url%5D">http://www.irs.gov/pub/irs-pdf/p970.pdf</a>
page 6 has instructions on how to report it on the tax return.</p>
<p>swimcat, just to clarify....is only room and board (in my D's case, paid for the most part through outside scholarships) taxable? Or is the merit full tuition also taxable?</p>
<p>Scholarships for tuition are not taxable income.</p>
<p>The scholarship that cover tuition will be tax free.</p>
<p>thankyou thumper and swimcatsmom</p>
<p>Does this apply to need based grants as well as merit based scholarships?</p>
<p>Yes. need based grants and merit based scholarships are treated the same as far as taxability. Pages 4-6 of IRS970 (linked above) explain what is tax free and what is not.</p>
<p>knew I could count on you swimcats and thumper...thanks very much</p>