Lifetime Learninf Credit and Miliary Tuition Assistance

Good afternoon, I am having an issue with Turbo Tax allowing me to claim a tax deduction for the lifetime learning credit. I paid $2,610 to attend a school part time last year and had $1,500 covered by military tuition assistance. Turbo tax says I do not qualify for lifetime learning credit. However, if I do not include the amount covered by TA, it says I do qualify for the credit. Shouldn't I be able to qualify for the amount I paid out of pocket, or is there something I'm missing? Does military TA count against the amount you can deduct from your 1098-T? Thank you.