@nmolinajr because the scholarship was reported on a 1099-MISC, you need to report it in three places.
1. Add it as other income from a 1099-MISC as described in Carl's answer. Make sure you indicate box 3, and answer all the work-related questions "no" (not an intent to earn money, not for work, etc.)
2. Go back to the Other Income section and add it under "other reportable income" at the very bottom of the income section. Call it something like "scholarship offset" and use a negative number. This will cancel out the taxability of the income.
3. In the Education section of the Deductions and Credits page, you need to enter your 1098-T for tuition expenses. Keep going in that section and you will be asked about scholarships. Enter the scholarship again. This is necessary because you can't get a credit for expenses that were paid with tuition, so the program takes your tuition and subtracts the scholarship to see how much is left over for the tuition credits.
Note this only applies if the scholarship is less than your qualified expenses for tuition and required supplies. If your scholarship is more than tuition, and you used some of it for room and board or other expenses, then that part is taxable and we have to make some different adjustments. Let us know if you need to do that.
