If you entered it correctly, where you are supposed to, TT puts excess (taxable) scholarship on line 1 of form 1040 with the SCH notation.
If that's not happening, you've entered it wrong or don't understand what is supposed to happen.
You really haven't described the problem very well. What are your numbers, boxes 1 & 5 of 1098-T? Other qualified expenses? Are you claiming the AOTC? What result are you expecting? What result are you getting?
Are you aware that you may be able to claim the American Opportunity Tuition Credit (AOTC) even if you student has a full scholarship. TurboTax (TT) may be using some of the expenses for the AOTC.
