Simple answer: yes. Money paid for qualified expense will get you a tax credit. Part of the credit is refundable.
But, taxes aren't simple.
If you are a dependent, on your parent's return, they claim the tuition credit not you.
Underneath box 1, In the 1098-T screen, click on the link "What if this is not what I paid the school" under box 1. You will then be able to enter your actual amounts (add your out of pocket money to the box 1 amount on the actual 1098-T) . This is the amount that TT will used to calculate your credit or deduction.
But, as the reply asks, why wasn't this money o the 1098-T. There is a separate place to add books and other course materials.
There is a tax “loophole” available. The student reports all his scholarship, up to the amount needed to claim the American opportunity credit, as income on his return. That way, the parents (or himself, if he is not a dependent) can claim the tuition credit on their return. They can do this because that much tuition was no longer paid by "tax free" scholarship. You cannot do this if the school’s billing statement specifically shows the scholarships being applied to tuition or if the conditions of the grant are that it be used to pay for qualified expenses.
Using an example: Student has $10,000 in box 5 of the 1098-T and $8000 in box 1. At first glance he/she has $2000 of taxable income and nobody can claim the American opportunity credit. But if she reports $6000 as income on her return, the parents can claim $4000 of qualified expenses on their return.
