Is there an error in your software regarding the 1098T when the scholarship is more than the tuition paid?
My daughter has $18,764 in scholarships on form 1098T. Her box 1 payments for tuition was only $11,532. Turbotax adds the $11,532 to her w-2 income of $10,711 for total taxable income then give her the American Op Credit for Education expenses when she has none. Her scholarship paid for most of her room and board, which I believe is the taxable part not the tuition paid of $11,532. Is something wrong with your software?