<p>Hi all, My daughter won a full scholarship on Semester at Sea last fall. UVA (the academic sponsor) broke out about $9,000 which was allocated toward room and board, therefore making it taxable - ugh. Now obviously since she was on board the ship for the semester, room and board were not optional. I guess I’m grasping at straws, as I hate to see her pay so much in taxes (the $9,000 combined with other school scholarships put her taxable income around $15,000) - leaving her owing around $1,000 federal and $500 state. Am I missing something? Thanks ever so much!</p>
<p>It is only taxable to the extent that the scholarships received during the year were more than the amount paid in qualified tuition and fees during the year. You don’t take it semester by semester.</p>