Education

You can add the scholarship following these steps:

The distribution is a bit more difficult to compute because of the earnings. 

I suggest you enter the scholarship. 

If that results in tax, try the distribution instead. 

You should be able to enter the 1099-Q, then report all used for education purposes except 2805.  So in your case 1,739 for education expenses. 

TO ENTER THE SCHOLRSHIP AS INCOME ON THE STUDENT'S RETURN:

 Click on Wages & Income

(If the program asks about your W2, select Skip for now )

Select answers to the following questions if necessary to move forward 

Click Add more income 

Scroll down to the VERY LAST option "Less Common Income" and click Show more

On this new drop-down list scroll down to the VERY LAST option "Miscellaneous Income" and click START 

On this new drop-down list scroll to the VERY FIRST option "Other income not already reported on a Form W-2 or Form 1099"

Click START

Select YES to the page titled "Other Wages Received" and Continue

Select CONTINUE on the "Wages earned as a Household Employee" screen (enter nothing here)

Select CONTINUE on the "Sick or Disability Pay" screen (enter nothing here)

Select "Yes" on the "Any Other Earned Income" screen and continue

Select "Other" on the "Enter Source of Other Earned Income" and Continue

In Description Box type "SCH" and the amount 2805