Yes, the $1500 excess scholarship is taxable income. Even though you didn't get a 1098-T, you can enter it thru the TurboTax education section.
In TurboTax (TT), enter at:
Federal Taxes Tab (Personal for H&B version)
Deductions & Credits
-Scroll down to:
--Education
--Education Expenses and Scholarship
Carefully go thru the interview. You will eventually be asked if you had scholarship not shown on the 1098-T. Then you will be asked if any of it was used for room and board (R&B). Enter $1500. R&B are not "qualified expenses". So, this is how you tell TT that it's taxable.
This assumes your FAFSA was grants/scholarships and not loans. "Refunds" from loans is not taxable income to you.
