Yes, you can: you would have to claim that the Pell Grant/Scholarship, were used to pay for Room and Board in the education expense section (if this is the case) after entering your 1098-T which most taxpayers need a place to live and have living expenses as outlined in the article below, or other qualifying educational expenses. Even though it may say room and board is not qualified that is why it turns taxable, but gives you the credit from the AOTC American Opportunity Tax Credit or LLC Lifetime Learning Credit, if applicable.
Fact Sheet: Interaction of Pell Grants and Tax Credits: Students May Be Foregoing Tax Benefits by Mi....
Only enter the amount of income indicated after entering your room and board expenses. It will say this is taxable income in the amount of xxxx.xxxx
To enter as income on Fed Return> Go to Personal Income in Federal Taxes>MISC INCOME>OTHER INCOME> Payer PELL GRANT/SCHOLARSHIP AMOUNT XXXX.XX
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