When completing the 1098-T education expenses in TurboTax, you will enter $20,000 as Other Scholarships/Grants/Fellowships. Box 5, which includes amounts for Scholarships or Fellowships, must be qualified to receive tax-free status. Room and Board are not qualified education expenses and the amount for the benefit received is taxable income.
The mention of "Non Reportable" by the college indicates that this is income not being reported to the IRS on a W-2 or 1099; as payments of scholarships, fellowships, and grants paid to U.S. citizens and resident aliens are not generally reportable to the IRS and are not generally subject to withholding of tax. These payments are also not subject to FICA tax.
Generally, payments for services rendered by a student at a college or university are taxable.
See this IRS article Tax Benefits for Education: Information Center for additional information. Scroll down to the Scholarships and Fellowships section.
