So you will complete 1098-T information just as it is shown on the form. If you keep going in Turbo Tax after you enter the 1098-T information, 3 or so screens later, Turbo Tax will ask if any of the scholarship money on 1098-T was included in income. You will say yes, and then a box drops down to fill in the amount. You will possibly need to get to this screen by choosing edit button for the 1098-T. I have attached a screen shot.
By stating that the scholarships were already in your income, you should be able to claim the credit.
