Yes, scholarships applied to room/board/transporation are taxable. A certain amount is taxable at the student’s % and money in excess of that amount is taxed at the parent’s %. I cannot remember what that dollar amount is. I also do not know what the new tax bill has. It does not appear to change the tax free status of merit scholarships for tuition, fees and books. I have seen nothing on scholarships applied to room and board.