I've read several articles online that say you can only count a scholarship as taxable if it is used for educational expenses other than tuition and fees. (money.stackexchange.com)
Is that a qualified educational expense for which I can repay myself from his section 529 account? (thecollegeinvestor.com)
Direct tuition payments (and tuition payments alone, NOT payments for other educational expenses such as room and board and meal plans) are not considered taxable gifts. (protective.com)