Scholarships not used for "qualified" expenses (tuition and required fees) is taxable. A stipend or scholarship designated or used for living expenses is taxable income.
It is not usual for the same income to be reported on a W-2 as on a 1098 in the schoalrship section, but when it is the income should only be reported once.
If part of the income reported on the W-2 was withheld for tuition (pre-tax) and the same income and tuition is also reported on the 1098-T then you would just not enter the 1098-T.
If the W-2 income didn't deduct the tuition pre-tax, then the tuition is reported as an expense but you wouldn't enter the scholarship from box 5 (assuming it's the same amount on the W-2).
Each item - the income and the tuition expense should only be accounted for once. If the tuition is deducted from the Box 1 income on the W-2 then the 1098-T should just be ignored.
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