Taxpayer is a full-time graduate student.  1098-T shows payments received (Box 1) $5,785.  Scholarships or grants (box 5) is $10,550.  So program is picking up $4,765 as taxa ble income.  $1,000 of scholarships was a CARES payment direct to school.  I read that theses CARES pyaments are not taxable? If so how do I show it?  Can I take some expenses against the taxable part since it was used for room & board and books, etc?