If you do are not a candidate for a degree, or if you do not have offsetting education expenses, the fellowship should be reported as less common income. (TurboTax Free Edition does not support this type of income, so you'll need to upgrade to TurboTax Deluxe Edition to complete your entry)
• Select Federal Taxes
• Select Wages and Income
• Scroll down to Less Common Income
• Select Start next to Miscellaneous Income 1099A, 1099C and choose the appropriate category to enter the information provided on your form
See IRS Publication 970 for additional information.
https://www.irs.gov/publications/p970/ch01.html
I tried the Less Common Income as suggested, and the income does show up on Line 1 of the 1040 as it should BUT I can not get "SCH" to show up on the dotted line next to line 1, as is required in P970. I can print and write it in, and file by mail, but wanted to file electronically. Is there any way to fix this so I can file electronically?