scholarship money how to claim

[Hal_Al]

Simple answer: you enter your 1098-T and follow the  TurboTax (TT) interview.  After entering the 1098-T, TT will ask if you have any additional scholarships, not included on the 1098-T. 

What are you trying to do? Are you the parent of a student or the student?

Scholarships that pay for qualified educational expenses (QEE - tuition, fees, books and other course materials) is tax free.  Scholarship amounts that exceed QEE is taxable income, on the student’s tax return, including scholarships that cover room & board. 

If box 5 of the 1098-T exceeds box 1, TurboTax (TT) will treat the difference as taxable income, unless you enter additional QEE at books and other expenses.

If you are entering the 1098-T, on the parent's  return, TT will advise  you that your student has taxable scholarship income.  It will not (and should not) enter the taxable scholarship on your tax return.

There is a tax “loop hole” available to claim an education credit, for the parents of students on scholarship.