@SusanEM said "I have excess from my scholarship, some of which goes to tuition, but some of the awards are specifically meant for living expenses and not tuition and supplies".
Your situation may best be explained by example. You have $5000 in box 1 of your 1098-T and $7000 in box 5. The stipulation in your scholarship is that $4000 must be used for room & board (living expenses). When TT asks "Did You Pay for Room and Board with a Scholarship or Grant?", you should answer yes and enter $4000. $4000 of your scholarship will then be treated as taxable income. But that means that $2000 of the tuition ($5000 -3000 from scholarship), can be used to claim a tuition credit*.
Q. I'm not sure what is meant by "expenses"?
A. That "expenses" are anything except the qualified expenses for the tuition credit (tuition, fees, books and computers). It includes food, lodging, transportation, clothing, recreation or even your spring break trip.
You can ignore the question "Did Your Aid Include Amounts Not Awarded for 2021 Expenses?", unless you know for a fact that some of the box 5 money was meant to pay either 2020 or 2022 expenses.
*It takes $4000 of tuition to get the maximum American Opportunity credit (AOC). To maximize the AOC, you can claim $6000 (instead of $4000)of your scholarship was used for living expenses (and is therefore taxable), freeing up $4000 to be allocated to tuition and the AOC).
