I received 43,114.26 in scholarship money. This covered my room and board, meal plan and books. My 1098-T shows only the tuition cost of 32,677.50. Why is that? I didn't

[ChrisJ]

An institution may choose to report either payments received (box 1) or amounts billed (box 2) for qualified education expenses. Books and fees are deductible and will be addressed in the TT interview, but scholarship amounts spent on room & board and meals will be taxable. If you have questions about the reporting on 1098-T, contact your school.

It may also benefit you to choose to include otherwise tax-free scholarships or fellowship grants in income. This may increase your education credit and lower your total tax or increase your refund.

1. Sign in - Continue your/take me to my return
2. Go to Federal Taxes, then Deductions and Credits
   
3. Edit/Add/Start for Expenses and Scholarships (Form 1098-T)
   
4. On Your Education Expenses Summary, Edit or Add Another Student
   
5. Edit Scholarships/Grants (for all schools)
   
6. TurboTax will ask 'Did you receive a Scholarship or Grant?' Answer: Yes, and enter the amount in Other Scholarships/Grants/Fellowships 
   
7. Did You Pay for Room and Board with a Scholarship or Grant? Yes. How much? The amount you enter here will reflect as taxable on your return.