Where do I find scholarships and are they taxable?

Start close to home, where competition is lower: your employer, your student's high school counselor, local civic groups (Rotary, Elks, community foundations), religious organizations, and the colleges themselves, which award the most scholarship money of all. Then widen out to reputable free databases and major sponsors. Avoid any scholarship that charges a fee to apply – that's a scam. As for taxes, scholarship money is tax-free to the extent it pays for tuition, required fees, books, and necessary equipment for a degree-seeking student. The taxable part is any amount used for room, board, travel, or optional expenses, and money paid for services like teaching can be taxable too. Keep records of how each award was spent so you can separate the tax-free portion at filing time. Have your student spend an hour a week applying – it's some of the best-paid work they'll do.