It means you need to find out if your son is reporting any of the scholarship income on his tax return, which could happen if he received a Form 1099-Misc or W-2 form reporting scholarship income. You can look at the source of the income reported on the tax forms to see if it is associated with scholarships.
Box 5 of the Form 1098-T reports scholarship income. That is used to reduce the education expenses reported in box 1 to determine the net education expense used to determine what your education credit is. Your son could report that as income if he received a tax form crediting him with scholarship income and then you would not have to reduce your education expenses by that amount. That could increase your education credit, so TurboTax needs to know about it.
You will need to ask your son if he is reporting any scholarship income on his tax return.
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