Scholarships that paid for non qualified expenses are taxable. Tuition, fees, books and computers are qualified expenses. If box 5 of your 1098-T is more than box 1, TurboTax will automatically treat the difference as taxable scholarship income unless you tell it differently.
If you indicate that you are someone else's dependent, TurboTax may automatically assume they are claimig a tuition credit, on their return. Be on the lookout, in the education interview for a screen "Amount used to claim the tuition credit" (or “Education Expenses used for a Tax Credit”). Check the amount in that box (usually $4000). Change it if needed.
