Are you being claimed as a dependent on your parent's tax return? If so, you should have indicated you are a dependent in the My Info section of the program.
If you are a dependent you cannot enter any type of education expense or credit on your tax return. Only the person claiming you as a dependent can claim the education expenses or credits on their tax return and they would report the Form 1098-T on their return.
Simple answer: If box 5, of the 1098-T, is more than box 1, you file the 1098-T because you have taxable scholarship to report.
If box 1 is more than box 5, your parents file the 1098-T because you are their dependent and they can claim a tuition credit.
But taxes aren't simple.
The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return. However receipt of a 1098-T frequently means you are either eligible for a tuition credit or deduction or possibly your student has taxable scholarship income.
If you claim the tuition credit, you do need to report that you (or your student) got one.
You claim the tuition credit, or report scholarship income, based on your own financial records, not the 1098-T. I Books and other course materials, including a required computer, are also qualifying expenses for a tuition credit.
It's possible that both the student and his parents "file the 1098-T', with adjustments.
Furthermore, there is a tax “loop hole” available. The student reports all his scholarship, up to the amount needed to claim the American Opportunity Credit (AOC), as income on his return. That way, the parents (or himself, if he is not a dependent) can claim the tuition credit on their return. They can do this because that much tuition was no longer paid by "tax free" scholarship. You cannot do this if the school’s billing statement specifically shows the scholarships being applied to tuition or if the conditions of the grant are that it be used to pay for qualified expenses.
Using an example: Student has $10,000 in box 5 of the 1098-T and $8000 in box 1. At first glance he/she has $2000 of taxable income and nobody can claim the American opportunity credit. But if she reports $6000 as income on her return, the parents can claim $4000 of qualified expenses on their return.
Books and computers are also qualifying expenses for the AOC. So, extending the example, the student had another $1000 in expenses for those course materials, paid out of pocket, she would only need to report $5000 of taxable scholarship income, instead of $6000.