I've entered the information for my son's 1098-T, where his tuition and related expenses is larger, by far, than a listed scholarship. The box 1 expense is more than double the scholarship amount (and coincidentally, is the amount after the scholarship is applied). Despite this, Turbotax claims my child needs to file taxes and include the scholarship "because scholarships and other education assistance are considered taxable income if they exceed (child's name)'s educational expenses". This statement is clearly wrong, the scholarship is 1/3 of his tuition expense. This is a Turbotax bug, you are giving wrong information to the user.
