We claim our daughter on our taxes. However, since she has scholarship that has to be reported as income from a 1098T, we have to file that 1098T on her return.

The scholarship is 1500.  It was used to pay for room and board.  Can I include 1500 in room and board expenses under Other Ed Expense, room and board as long as I have not claimed those on our return?  I understand that she will not be eligible for a credit or deduction because we are claiming that, but including that expense keeps that scholarship from being taxed, correct?