Having read this entire thread, is the question still outstanding as to whether or not students who are on full-ride athletic scholarships at schools that normally charge more than $12,000 for the R&B portion, will starting in 2018 find this amount to be taxed at the trust rates?
Separately, for students earning a scholarship equal to, but not designated/stipulated for tuition only, but paying for their fees/books themselves (non-taxable QEE’s), as well as their R&B (not a QEE), in prior years it was advisable for the student to consider a portion of their scholarship/grant to be taxable, so the parent could claim the AOTC. Is this still the case for 2018? As I recall it, it is generally worthwhile claiming up to $4000 of the scholarship as taxable, because a child’s tax on $4k is much lower than what the parents can deduct as a credit.