Yes, in most instances, grant funds are counted as taxable income on your federal tax return. This means that you will be required to pay taxes on these funds.
Here's how to enter it in TurboTax:
Open or continue your return, if you're not already in it.
Search for 1099-misc and select the Jump-to link.
Answer Yes to Did you get a 1099-MISC?
Enter the info from your form into the corresponding boxes.
What are your circumstances of a grant being reported on a 1099-Misc? This is highly unusual. If it's truly scholarship income, it should be reported (and entered in TurboTax) differently than the "other income" usually shown in box 3 of a 1099-Misc.
Scholarship income is treated as "earned income" for purposes of calculating a student-dependent's standard deduction. "Other income" is unearned income. This frequently means scholarship income goes untaxed while other income is taxed,