I receive VA VR&E and received my 1098-T in which Box 5, Scholarships or Grants indicates the VR&E payments but so does Box 1. Is this accurate as no $ is paid to me?

[ThomasM125]

Yes, it is correct. The scholarship money that you are credited with is reported in box 5 and it is used to pay the tuition that is entered in box 1. Even though the money does not pass through your hands, you are treated as having received it and then used it to pay the tuition.

[Hal_Al]

You cannot claim a tuition credit, since all you qualified expenses were paid with tax free money.  You do not need to enter the 1098-T, at all. 

The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return. However receipt of a 1098-T frequently means you are either eligible for a tuition credit or possibly your student has taxable scholarship income.  If you have neither, you do not need to enter (VA benefits are not taxable scholarship).