Yes, healthcare is not considered an education expense, so the amount of the scholarship that paid for that will need to be claimed as income, or, if the scholarship is not restricted, it can be applied to any other out-of-pocket expenses you may have had, such as books and/or supplies.
You can report the $3719.95 as medical expenses and it might be deducted on Schedule A (if applicable).
According to the IRS:
“Qualified education expenses
don't
include amounts paid for:
Insurance;
Medical expenses (including student health fees);
Room and board;
Transportation; or
Similar personal, living, or family expenses.
This is true even if the amount must be paid to the institution
as a condition of enrollment or attendance.”
CLICK
HERE for IRS Pub 970 Education Credits
