Q. Is there a difference between a grant v. scholarship v. an award?
A. No.
Q. How do I know what is reportable and what isn't?
A. Scholarships that pay for qualified educational expenses (QEE - tuition, fees, books and other course materials) is tax free. Scholarship amounts that exceed QEE is taxable income, on the student’s tax return.
If box 5 of the 1098-T exceeds box 1, TurboTax (TT) will treat the difference as taxable income, unless you enter additional QEE at books and other expenses. Room & board are NOT QEE.
If you are entering the 1098-T, on the parent's return, TT will advise you that your student has taxable scholarship income. It will not (and should not) enter the taxable scholarship on the parent's tax return.
You say "I received a question on my tax preparation questionnaire that stated, 'Did anyone in your family receive a scholarship in the past year, and were the funds used for anything other than tuition?' "
I don't recall ever seeing that question in TT.
