What you do depends on the numbers.
Example 1: Box 1 is bigger than box 5. Your expenses were greater than your grants. Your parents take the 1098T and the education credit, if eligible. The difference between box 1 and box 5 would be the education expenses.
Example 2: Box 1 is bigger than box 5. Your expenses were greater than your grants. Your parents take ALL of the education expenses(box 1) and you include box 5 in your income. This only works if your parents can claim the education credit. The credit to them is usually more than a little or no tax to you. Nobody uses the 1098T itself, just the information split between you.
Example 3: Come up with some combination of the first two that gives one of both of you the most advantage.
Example 4: Box 5 bigger than box 1. You take the 1098T onto your return. You have income of the difference. Nobody gets a tax credit.
IRS and Turbo Tax links:
What's the income limit for the American Opportunity and Lifetime Learning Credits?
What education tax credits are available?
Why didn't I get a credit or deduction for education expenses?
If a parent claims me as a dependent, can I claim the education tax credit?
What expenses qualify for the American Opportunity Tax Credit and which ones do not?
Who is eligible to take the American Opportunity Tax Credit?
Turbo Tax college education discussion
Form 8863
Qualified Expenses
Qualified College
Available Education Credits
IRS Q & A about education credits
Tax Benefits for Education: Information Center
Why is my scholarship taxable?
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