You may have done it correctly. If so, the scholarship is added to Line 7 of the 1040 under wages. The extra taxes on this added amount should only be 10%-25% depending on the rest of your income. You shouldn't have to pay social security or Medicare tax on this money, so be sure to follow the instructions below for the property entry.
If you have additional questions or details regarding this, please feel free to post in the comments for further clarification.
The steps for entering the scholarship amount not included in your 1098-T into TurboTax is as follows:
- Federal
- Wages and Income
- Miscellaneous Income
- Other income not already reported
- Answer Yes to Did you receive any other wages?
- On the screen for Wages Earned as a Household Employee click continue without entering amount in box shown
- On the screen for Sick or Disability Pay click continue without entering amount in box shown
- Answer Yes to Did you earn other wages?
- Choose the option Other on the Enter Source of Other Earned Income screen
- Then you will enter SCH in the description box and the amount
- Click Done
For further information please see IRS PUB 970: https://www.irs.gov/publications/p970/ch01.html#en_US_2014_publink1000178003
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