maglib
Level 10

Get your taxes done using TurboTax

since amount is in box 3, you report it with the 1098-T, only amounts in excess of tuition would be taxable income.  TT would handle that for you.  You can be conservative and report it and do negative reporting it as Education scholarship so the IRS doesn't pull the return and the net impact will be the same.
**I don't work for TT. Just trying to help. All the best.
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I am NOT an expert and you should confirm with a tax expert.