TurboTax (TT) will automatically reduce the amount of qualifying expenses, in box 1 of your 1098-T, but the mount of Scholarship in box 5 (and/or by any additional scholarship you enter). To keep that from happening, you need to tell TT that you used some of the scholarship for room & board (or other unqualified expenses). That makes that portion of the scholarship taxable income to you, but then the tuition expenses can be allocated to the Lifetime Learning Credit (LLC).
"Books and things" are not qualified expenses for the LLC, unless required to be purchased from the school.
