The total Pell grant is usually already included in box 5 of the 1098-T. When you enter your 1098-T, TurboTax (TT) will subtract the box 1 amount (and any additional books, computer and other course materials that you enter) to determine the taxable amount of the scholarship.
If you had any grants, not already included in box 5, TT will ask about those after entering the 1098-T.
If your parents are claiming a tuition credit based on your 1098-T, on their return, you should eventually reach a screen called "Amount used to calculate education credit". Verify the amount in that box is $4000. That will reduce your qualified expenses and make $4000 more of your scholarship taxable.
For more detail, see: https://ttlc.intuit.com/community/college-education/discussion/re-how-can-i-add-scholarships-and-gra...
