Invalid Education Credit from TurboTax?

[ponolson]

TurboTax is giving me the American Opportunity Credit.  Even though it would be great to get it, I don't think this is correct.  Here's the situation: 

My son (19) is a full-time student.  My wife and I (married, filing jointly) are claiming him as a dependent.  We received a 1098-T for my son, so it seemed good to enter that information in our tax return.  However, his education expenses are paid through a combination of scholarships and a Grandparents' Trust setup by my parents.  Since my wife and I are not actually paying the education expenses, I assume we shouldn't get the credit.

If I have that right, what do I put in TurboTax?  When entering the 1098-T, I couldn't find any place in TurboTax to indicate that some education funds came from the trust.  The easiest solution seems to be to just leave the 1098-T out of the tax return altogether.  Would that be the best approach?

[KrisD15]

Only enter Form 1098-T to generate an education credit, or if you need the program to compute taxable income because of excess scholarships and/or 529 Distribution. 

If there is no reason to apply for a credit, and the student doesn't need to claim income from it, don't bother with the 1098-T.

Form 1098-T is used for worksheets, it is not directly reported or entered on a 1040.