Education

For the benefit of others who might be facing the same issue, I found a workaround that was acceptable to TT, ie, it didn't prevent me from e-filing. Going to "Forms", I entered the taxable portion of the scholarship on Line 2c under "Distributions Not Subject to Additional 10% Tax" on TT's Form 1099-Q. That had the effect of removing that same amount  from the calculation of the 10% penalty.