Declaring scholarships as income for American Opportunity Credit on taxes

In fact, as noted in post #9 above, it says the opposite!

Whether paid by the student or by the parent, a student’s living expenses include all the costs listed by @Madison85 above. And you can add to that list:

Electronics (computer, cell phone, tablet)
Personal vehicle for non-commuters (for the student away at college who can’t live without a car!)