Q Should the amount be reported or is this zero, per IRS Topic 421?
A. Both, sort of.
As JamesG1 said, you enter it (report it) , in TurboTax, as additional scholarship in the "Education Expenses and Scholarships" section (do not enter it at the 1099-Misc income place). Then you enter the expenses that it was used to pay for. Some or none of it may be taxable. The taxable amount will show on line 8r of Schedule 1. Room & board are not qualified expenses for a scholarship to not be taxable.
