Report only the difference between the T4A (scholarships/grants), and the T2202 (tuition) as income. That amount can be further reduced by cost of "course materials". Yes, a googled conversion rate is close enough.
In TurboTax, enter the scholarship in the educational expenses section, not the income section. This is necessary to get it on the right line of form 1040 (line 1 with the notation SCH).
From IRS Publication 970:
A scholarship or fellowship grant is tax free (excludable from gross income) only if you are a candidate for a degree at an eligible educational institution.
An eligible educational institution is one whose primary function is the presentation of formal instruction and that normally maintains a regular faculty and curriculum and normally has a regularly enrolled body of students in attendance at the place where it regularly carries on its educational activities*.
Qualified education expenses. For purposes of tax-free scholarships and fellowship grants, these are expenses for:
- Tuition and fees required to enroll at or attend an eligible educational institution; and
- Course-related expenses, such as fees, books, supplies, and equipment that are required for the courses at the eligible educational institution. These items must be required of all students in your course of instruction.
* Note that for tax free scholarship (unlike eligibility for a tuition credit), the institution does not have to be eligible to participate in a student aid program administered by the U.S. Department of Education. So, foreign schools count.
