At the risk of sounding stupid, please explain what a *taxable* scholarship is? Aren't all scholarships taxable, unless they are used for educational purposes and therefore excluded from income by the code? And aren't all amounts in excess of eligible expenses taxable, regardless of what the donating organization says?
Is there another type of scholarship that is taxable regardless of whether it is used for qualified higher education expenses? I really have never heard of it before.
Tom
Modesto, CA