<p>I understand that scholarship money used for tuition, when you are a degree candidate, is tax-free. My daughter is a high school senior who is taking a course at a local college. She received a scholarship for half-tuition for this course from my employer. Since she is still a high school student, she is not a degree candidate at the college, but at her high school. My question is this: does she have to pay tax on this scholarship, even though it was used only for tuition? Anyone have a view on this or a suggestion as to how I can find the answer?</p>