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Do not use Form 1099-MISC to report
scholarship or fellowship grants. Scholarship or fellowship
grants that are taxable to the recipient because they are paid
for teaching, research, or other services as a condition for
receiving the grant are considered wages and must be
reported on Form W-2. Other taxable scholarship or
fellowship payments (to a degree or nondegree candidate)
do not have to be reported to the IRS on any form, unless
section 6050S requires reporting of such amounts by an
educational institution on Form 1098-T, Tuition Statement.
See section 117(b)–(d)