From one of my son's school's financial aid brochures:
IRS tax rules consider grant and scholarship amounts you receive that are in excess and tuition and the cost of required books and supplies to be taxable income. Each year you will be notified of the amount of such income to report on your federal tax return, if applicable.
So, is this saying that any grant over the amount of tuition, books, and supplies (and how does the IRS know the cost of books and "supplies", by the way?), will be considered income for my son? And do colleges then add that income for the following year, thereby decreasing the grant?
What about the cost for room and board? Why wouldn't the IRS include that?
Financing college seems waaaaaaaaaaaaaaay too complicated.