I used the GI Bill for school while Active Duty. Is the GI bill veterans benefits when entering 1098-T information and it asks if the scholarships are veterans benefits?

Yes, if the Veterans Benefits are listed on your 1098-T, be sure to enter that on the screen that asks what portion of Box 5 are the tax-free benefits but do not also enter them on the screen that asks about assistance not listed on the 1098-T. DO NOT zero them out.

If ALL your expenses (Box 1) matches ALL your Benefits (Box 5) you can continue to go through the program, but there is no requirement to report the 1098-T  since you won't be taxed on the benefits and you won't be eligible for an Education Credit. 

If you had additional expenses not listed on the 1098-T, such as books and supplies you had to purchase out-of-pocket, you might want to continue entering the form.

Only expenses NOT PAID with your GI Benefits would be eligible to apply towards a credit.