Q. I'm thinking I don't have to enter the form since they offset and I wouldn't get the deduction for the Lifetime Learning Credit?
A. That's correct. The 1098-T is only an informational document. There is no requirement to enter the numbers on your tax return.
You cannot claim a credit, because you are not "out-of-pocket".
You may have read of a "loop hole", in this forum, for claiming a credit, by having the student pay tax on the scholarship. That's not applicable in your situation. The scholarship is "restricted" to being used for tuition.
