Q. Okay, great. Now, for the question: "Did you pay for room and board with a scholarship or grant" do I say "yes" and put the total of the Pell Grant, so that it gets counted as taxable income since I did not use it for qualified educational expenses?
A. No. See the next question.
Q. Or would this be calculated by TT even without me doing that?
A. Yes. More importantly, you want to enter any other qualifying expenses, e.g. books and a computer, to reduce the amount of the Pell grant that gets taxed. Anything you enter for room & board, at that question, gets taxed regardless of other expenses entered.
We haven't talked about the education credit. Since your tuition is paid by Hazelwood, there is no tuition to claim for the credit. Books and a computer would be qualifying expenses, for the credit, if you are an undergrad.
https://www.irs.gov/Individuals/AOTC
