Report that as a taxable scholarship per instructions in IRS Pub 970.
Please enter the amount into TurboTax under:
Federal
Deductions & Credits
Education
Select "Expenses and Scholarships (Form 1098-T)"
Continue through the interview,
Enter Form 1098-T if you have one, otherwise continue without it
You will eventually land on the "Add any other financial aid" screen
Enter the amount here and continue
You may get a message saying that you do not qualify for an education Credit which is fine
Continue
The amount will be listed on your Schedule 1 line 8r and flow to your Form 1040 line 8.
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