Is box 5 greater than, less than or equal to box 1?
If box 5 is less than box 1, then you can enter the 1098-T as is. If you had out of pocket expenses, then you may qualify for an education credit.
If box 1 is equal to box 5, there is no need to enter your 1098-T as this would not produce a credit, nor would it have taxable income.
If box 5 is greater than box 1, and box 5 strictly consists of the GI Bill and the BAH grant, then even the excess would not be taxable income since this is considered a non-taxable military benefit.
If box 5 is greater than box 1 and box 5 includes more than the GI Bill and BAH grant (for example, a Pell Grant or other type of scholarship) then any part of the other grants or scholarships could potentially be taxable income if your military benefits fully covered your education expenses depending on how much additional grants and scholarships you received.
After you enter your 1098-T in TurboTax, you will be asked if any part of the scholarships and grants were tax-free stipends or grants. You will need to say yes, then enter the amount you received from the military. None of that amount will be taxable. TurboTax will calculate if there is a taxable amount based on how much additional grants and scholarships have been received.
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