It depends. The reason why it is asking you this question is to give you an opportunity to maximize your education credit benefit. By reporting the room and board amount, you are allocating the scholarship amount between non-qualified educational expenses (room and board) and qualified educational expenses. By allocating your scholarship income to nonqualified education expenses you may increase the educational credit that will outweigh the taxable amount of your scholarship.
[Edited 02/07/24|8:22 am PST]
@mister-broshar
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