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Education
In TurboTax, enter the 1098-T, as received*. Enter your book expenses at the books screen*. You'll be asked if any of the scholarship was used for room & board. Say yes and enter $5574 (5903-4329+4000=5574).
The result is that TT will add $5574 to line 1 of form 1040, as income, with the notation SCH5574 on the dotted line to the left. It will add the $1000 refundable credit to line 29 of form 1040 and $1500 credit to line 20 (transferred from line 3 of Schedule 3). The $1500 assumes you have at least that much tax liability. Otherwise, less will be entered, reducing your tax to 0.
* I assume book cost is the difference between box 1 and $4329 (so you'll be claiming a total of $4329 in expenses). I also assume box 5 was $5903.
‎February 13, 2021
9:45 AM