You file the 1098T if you want tax credits or to substantiate 529 withdrawals.
Based on the way Turbo tax handled the 1098T questions, I included it on my tax return as well as my dependent son's tax return. I don't think it would be considered double dipping unless you're getting double benefits, which we did not. In my situation my dependent son has full scholarship with part of it taxable (room and board). The taxable portion exceeds his standard deduction so we had to pay tax on it based on our tax rate (that didn't make me very happy!) I also had a 529 withdrawal for him for small additional expense. I reported the 1098T on my return when TurboTax asked for it and included the additional expense so I would not pay tax on earnings related to 529 withdrawal. My son had to report the 1098T due to the fact that the scholarship exceeded qualified expenses. The taxable portion of the scholarship is considered his unearned income and taxed at the parent's rate. TurboTax walks you through this and completes Form 8615.
