1098T - Payments vs Scholarships, Grants

After working through the Education/Expenses and Scholarships (Form 1098T) section of TurboTax, it told me I am not eligible for an education credit - even though I received one last year for the first time.  Looking at the numbers, Box 1 was approx $32k and box 5 was $26k - so I'm not sure why it tells me Scholarships and Grants exceed educational expenses.  Does 529 money get rolled into this equation too?  That was about $10k this year, which would put it over the tuition expenses, but it would be used for room and board (vs the $32k for tuition).