Grants and /or scholarships are taxable income only to the extent that they exceed qualified educational expenses to include tuition, fees, books, and course related materials.
See Qualified Education Expenses
If your qualified expenses exceeded your grants and scholarships, you have no taxable income.
To enter educational expenses:
- Click on Federal Taxes (Personal using Home and Business)
- Click on Deductions and Credits
- Click on I'll choose what I work on (if shown)
- Scroll down to Education
- On Expenses and Scholarships (Form 1098-T), click the start or update button
Consider revisiting the above area to ensure all your qualified expenses are entered.