Why doesn't the college issue a 1099 for taxable scholarship income?

Post #14 in this thread is MiddKidd’s post. Check his reference to page 15 of Pub 501. What specifically on the worksheet leads you to believe scholarships should be included?

Make sure you read all the fafsa and/or CSS questions carefully. There’s a question on fafsa in the student section asking how much taxable scholarships the student reported to the IRS in AGI. The amount you enter for that question is subtracted from her AGI in the fafsa efc formula.

Hopefully you also included the cost of required books and supplies, if she kept receipts, in TurboTax and that was subtracted from her scholarships too.