Scholarship for tution

Scholarships used for Qualified Educational Expenses (QEE)(tuition, fees, books and other course materials, including a required computer) are tax free and are not reported on your tax return.  Scholarship money used for non QEE (room & board) are taxable.  When  scholarship amounts  exceed QEE, the excess is considered taxable income. When box 5 of your 1098-T exceeds Box 1, TurboTax (TT) will treat the difference as taxable, unless you enter other qualified expenses (books & computers). 

There is a tax “loop hole” available. The student reports all his scholarship, up to the amount needed to claim the American Opportunity Credit (AOC), as income on his return. That way, the parents  (or himself, if he is not a dependent) can claim the tuition credit on their return. They can do this because that much tuition was no longer paid by "tax free" scholarship.  You cannot do this if the school’s billing statement specifically shows the scholarships being applied to tuition or if the conditions of the grant are that it be used to pay for qualified expenses.

Using an example: Student has $10,000 in box 5 of the 1098-T and $8000 in box 1. At first glance he/she has $2000 of taxable income and nobody can claim the American opportunity credit. But if she reports $6000 as income on her return, the parents can claim $4000 of qualified expenses on their return.

Books and computers are also qualifying expenses for the AOC. So, extending the example, the student had another $1000 in expenses for those course materials, paid out of pocket, she would only need to report $5000 of taxable scholarship income, instead of $6000.

Thanks,

My full question did not post - reposting. My daughter gets scholarship for tuition & living expenses -1098T shows exact tuition amount. After tuition, books/computer expenses and standard deduction the remaining is her taxable income. This income is taxed at parent's tax rate, generally higher than what the actual income tax bracket is, due to "kiddie-tax". However, I thought that of the first $2200 of this taxable income subject to "kiddie-tax"- $1100 was not taxed, remaining $1100 was taxed at 10% and the amount greater than $2200 was taxed at the parent tax rate. However, TurboTax calculates the tax on the full taxable income at the parent's tax bracket rate which can be a fairly significant difference. Is this correct?

Can someone tell me does the scholarship covers book costs? It's so expensive to buy all of them. That's why my daughter uses this source https://paperap.com/free-papers/maya-angelou/  with book analysis for some coursework. It saves our budget a lot but I want to allow her all things she needs for education...