Q. The app says I owe taxes on my scholarship. Isn't that wrong?
A. No, not necessarily.
You enter scholarships. You enter Qualified expenses (QEE). The amount of scholarship that exceeds QEE is treated as taxable by TurboTax (and the IRS).
The scholarship for room & board (R&B) question is there to allow you to shift some of the scholarship away from QEE to free up more QEE for the tuition credit. There's no glitch.
