Q. I just want to make sure that if I leave the 1098-T out of my return that it won't flag anything?
A. Yes, you do not have to enter the 1098-T. The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return.
Nothing will be flagged that wouldn't be flagged if you did enter it. If you do enter the 1098-T, and follow the interview carefully, TurboTax (TT) will conclude that you don't qualify for a credit and none of the scholarship is taxable. But none of that info will be sent to the IRS.
Here's a post on the five main points on the 1098-T:
https://ttlc.intuit.com/community/college-education/discussion/re-what-do-i-do-with-form-1098t/01/37...
In particular, note:
1. That the 1098-T your enter is not sent to the IRS
2. There is a way for students, on scholarship, to get a tuition credit.
