Are Scholarships and Grants in Excess of Tuition Taxable?

Examine the core facts Are Scholarships and Grants in Excess of Tuition Taxable with clear explanations.

If you receive a scholarship, a fellowship grant, or other grant, all or part of the amounts you receive may be tax-free.

Can a parent claim a scholarship on their taxes?

If the amount of scholarships/grants exceeds the amount of qualified education expenses, the parent will know this when reporting the education on their tax return, because the parent will not qualify for any of the tax credits. (They only qualify for tax credits based on out-of-pocket qualified expenses not covered by scholarships/grants.)