Do I just put in the amount in box 1 of the 1098-T? Or do I need to subtract state and federal aid?

[MarilynG]

TurboTax will take the amount in Box 1 and subtract the amount in Box 5 to get an amount to qualify you for an Education Credit.

You can enter additional expenses (like books or required fees) that are not included in the tuition amount in Box 1. Loans are considered paid 'out of pocket' for expenses. 

Click the link for more info on the 1098-T you may find helpful.