I am in the midst of completing my tax return but found out I could use my scholarship dollars toward room and board. How can I correct this before completion?

Scholarships are tax free if used for qualified educational expenses (QEE)(tuition, fees, books and other course materials).

If you designate some of the scholarship for room & board (non QEE), that portion of the scholarship will become taxable income.

Go through the entire education interview until you reach a screen titled "Your Education Expenses Summary".  Click edit next to the student's name. That should take you to a screen “Here’s your Education Summary”. Click edit next to scholarships. You will reach a screen did you use the scholarship for room and board.

If you reach the Scholarship screen sooner, in the interview (and you should), answer yes to get to the room & board question.