If the difference between box 1 and box 5 on the 1098-T is $400.00 and that was covered by a tax free grant (Cares act) either don't enter the 1098-T Or enter the 400 as "other tax free assistance not reported on a tax form".
The education credits can be complicated because you might be allowed to allocate scholarships to taxable expenses, such as room and board, thereby freeing up expenses for an education credit. It also depends on any other income you have.
If you enter the 1098-T AND enter the Cares payment into the Education section, the TurboTax program should be able to compute the best scenario for you.
IRS Pub 970
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