It depends on what the scholarship income is used to pay for - if you use your scholarship to pay for any of these, it counts as income and the amount paid is taxable:
- Room and board
- Travel
- Any fees, books, and supplies or equipment that are not required for your courses
On the other hand, if the scholarship funds are used for tuition,fees, books and supplies required for your course, then that portion of the scholarship income is not taxable income.
Please see the following TurboTax FAQ, "Why is my scholarship taxable?":
https://ttlc.intuit.com/replies/3651222
To enter your scholarship income in TurboTax, in your return, go to Federal Taxes, Deductions & Credits, Education and the program will walk you through the information about your scholarship income, to determine what's taxable.
