@chasitysmithpede let me explain. You had a 1098-T form. In Box 5 of that form was scholarships. In Box 1 of that form was the Qualified Educational Expenses (QEE) and I'll assume you had no other additional QEE.
If the Scholarships (Box 5) exceed the Expenses (Box 1), that difference is income to you and is added to Line 1 of Form 1040 with the designation "SCH".
The way the IRS looks at it, that scholarshp money is income to you and taxable BUT to the extent the money was used on Educational Expenses, it reduces what is taxable on a dollar for dollar basis. In your case, since the scholarship dollars (what you were given) exceeds the Expenses (what you spent). what remains is taxable to you.
there is nothing to fix - that is the way it works.
