The Education Credit is to help with your out-of-pocket Education Expenses (net qualified education expenses). You must have had enough expenses over your Scholarship amount to qualify for AOC in the past.
Make sure you entered all your expenses (not just Tuition). Make sure the amounts in Box 1 and Box 5 on your 1098-T are correct. Sometimes one or the other will have an amount for two semesters, the other for one.
Another option you can try is to make part of your Scholarship Taxable Income, so you can qualify for the AOC. You will need to delete your current 1098-T entry to do this.
Per Champ @Hal_Al:
"How to Enter taxable scholarship.
Enter at Educational Expenses and Scholarships, under Deductions and credits (not the income section).
After answering no to having a 1098-T, answer yes to qualifying for an exception (that gets you to the entry screens). You will have to go thru the whole education interview to get to the scholarship screen. At the scholarship screen, enter the amount of the grant. When asked if any was used for room and board, answer yes. Then enter the amount you want to be taxable (usually all of it), in the pop up box. R&B are not "qualified educational expenses". So, this is how you tell TT that it is taxable. Note the wording at that screen “or other expenses”. You didn’t have to literally use the scholarship for R&B. This will put it on line 8r of Schedule 1 (this line is new for 2022-3).
If you do have a 1098-T, one of the follow-up questions will be do you have any scholarships not shown on the 1098-T. Enter the additional scholarship/stipend there.
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