Hello.
My wife is enrolled for a PhD at a University in the US. During 2008, she received her regular salary for half the year and got selected for a Scholarship for other part. We received a W-2 for the salary part and a 1098-T for the scholarship from the Univ.
My question is whether she needs to file tax for the Scholarship. The money is used for boarding, lodging and other personal expenses...
If yes, where do we enter the amount in form 1040?

Appreciate your help.

For degree student scholarship for tuition fees is not taxable. Scholarship for boarding, lodging and personal expenses is taxable.
Read scholarship and fellowship grants, Your U.S. Tax Return: The U.S. Income Tax Topics 1