The easiest way to get the taxable scholarship on line 7 of the 1040 (where it goes with abbrev "SCH") is to enter the 1098-T on his return. Just put the calculated taxable scholarship amount in Box 5 of the 1098-T when you type it in. Don't fret about the rest. Putting just the taxable scholarship in Box 5 will carry the income to his return, and you won't need to upgrade from the free version.
