No, you do not have to enter your Chapter 35 Survivors' and Dependents' Educational Assistance for your 1098-T entry. In TurboTax, look for the "Did ____have any of these common situations in 2025?"- you can indicate that you received a scholarship. grant or other aid here.
The IRS treats Chapter 35 as tax- free subsistence allowance- it is a general benefit as opposed to education-specific, so it does not have to be used specifically for Tuition or even Room & Board. See Veterans' Benefits.
[Edited 02/03/26|8:35am PST]
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