"My scholarships/grants lightly exceed my tuition cost".
That's a disqualifier because "Scholarships, grants, and other tax free assistance exceed the education expenses; so there were no net qualified education expenses".
If you've gotten the credit, in the past, it's because you entered additional qualified expenses (books, computer, other course materials) or you've declared some of your scholarship taxable.
There is a tax “loop hole” available. The student reports all his scholarship, up to the amount needed to claim the American Opportunity Credit (AOC), 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.
Books and computers are also qualifying expenses for the AOC. So, extending the example, the student had another $1000 in expenses for those course materials, paid out of pocket, she would only need to report $5000 of taxable scholarship income, instead of $6000.
The way you enter this in TurboTax (TT), when asked if any of the scholarship paid for room & board, in the interview, enter $6000 (in the 1st example above).
To make some of the scholarship taxable (re-allocate some of the expenses), you must tell TT how much you want taxable by saying it was used for room &board. Note the wording at that screen “or other expenses”. You didn’t have to literally use the scholarship for R&B. Sample at
https://ttlc.intuit.com/community/taxes/discussion/re-how-to-enter-this-in-turbotax-aoc-coordination...
How old are you?
A full time unmarried student, under age 24, even if you don't qualify as a dependent, is only eligible for the refundable portion of the American Opportunity Credit if he supports himself by working (unless you are an orphan). You cannot be supporting yourself on parental support, 529 plans or student loans & grants. It is usually best if the parent claims that credit.
You can still qualify for the non refundable portion, hence the comment "There is no taxable income in your return".
