What do you mean you didn't actually pay?
What is in Box 1 (Tuition paid) and Box 5 (Scholarships)
If Box 1 is larger than Box 5, you may get a credit.
If Box 5 is larger than Box 1, you might owe tax.
My child took college level classes through her high school and because of this we received a 1098-T. The tuition was paid with a grant and I didn't actually pay anything. I'm also confused on how I am supposed to answer the question Was my child working on an Associate, Bachelor's or Graduate degree.
The amount in box 1 and the amount in box 5 equal each other.
I'm thinking I don't have to enter the form since they offset and I wouldn't get the deduction for the Lifetime Learning Credit.
Q. I'm thinking I don't have to enter the form since they offset and I wouldn't get the deduction for the Lifetime Learning Credit?
A. That's correct. The 1098-T is only an informational document. There is no requirement to enter the numbers on your tax return.
You cannot claim a credit, because you are not "out-of-pocket".
You may have read of a "loop hole", in this forum, for claiming a credit, by having the student pay tax on the scholarship. That's not applicable in your situation. The scholarship is "restricted" to being used for tuition.