As others have said, If you entered your 1098-T and there was more in box 5 than Box 1, TurboTax automatically treats the difference as taxable income. The taxable amount will be reduced by any book and computer expenses you enter. The taxable amount can be increase for any amount used by your parents to claim the tuition credit. You will eventually reach the screen "amount used to claim the education credit". If TT has not prepopulated that with $4000, you should enter (or change to) $4000 (the amount needed to get the maximum AOTC).
If your situation is different, reply with details for a workaround.
