AOC AND SCHOLARSHIPS

[TAXMAN]

Can we pick how much we want to make taxable of the scholarship even if spent on tuition?

[TexTaxToo]

As long as the terms of the scholarship allow it to be spent on non-qualified expenses (such as room and board), and such expenses were paid during the year, you can allocate the scholarship between tuition and the other expenses any way you want, regardless of how the scholarship money was actually used.  Any amount you allocate to non-qualified expense is taxable.

If the scholarship was restricted to tuition only, you cannot make it taxable by using it for other expenses.

[TAXMAN]

Brain fog thanks for the response as how I also saw it.