Do I have to file my 1098 T?

I am in graduate school on a teaching fellowship and received a 1098T from my University. I do not pay anything out of pocket for my education. I saw that the IRS has an exemption for the 1098T form for

"Students whose qualified tuition and related expenses are entirely waived or paid entirely with scholarships or grants"

I believe that I fall under this category as my scholarship from my fellowship covers all of my tuition. When I do input the 1098T, my refund is cut nearly in half. If would be greatly beneficial if I did not have to file this form.
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    If you have taxable scholarship/fellowship, you are required to report it as taxable income.

    If your box 5 amount includes fellowship included on a W2 then your 1098t is wrong.  That would not be taxable a second time as scholarship income.

    I suggest you look over the 1098t and try to understand if it is complete.
    Sometimes the box 1 of box 2 doesn't include all of the tuition and you need to enter additional expenses not on the 1098t.  Sometimes the box 5 amount might include something like student loans or fellowship taxable on the W2.  Then you need to adjust the entries.

    This link might help
    http://turbotax.intuit.com/support/iq/TurboTax-Topics/Paying-Qualified-Education-Expenses-with-Grants-or-Scholarships/GEN80525.html?_requestid=11424
    • Hi TurboTaxLouise,
      How do I adjust that amount already included on the W2? Do I adjust the difference on the "Other income" line of the 1040 as a negative amount?
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