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Scholarship Exemption for Full-Time Students
Students who enroll full-time and are entitled to the tuition deduction are not required to claim scholarship money as taxable income, except when related to employers and businesses.
The following qualify for the scholarship exemption and are considered non-taxable:
The scholarship exemption only applies when it is directly related to the full-time program in which the student is enrolled. The program length, conditions and terms of the scholarship, and the length of time of the financial award are considered when deciding whether a scholarship is tax-exempt.