My college was paid over $24K total, $12,500 of my own money, remaining $12K a scholarship. Both are on 1098-T (box 1&4) so it looks like I only paid $500. What do I do?

Box 4 on a 1098-T is "Adjustments for a prior year".

The credit is based on Box 1 (what was paid) and Box 5 (scholarships received). 

If 24,000 was paid and you received a 12,000 scholarship, Box 1 should be 24,000 and Box 5 should be 12,000. 

The credit is based on a Calendar year. If you paid in December 2021 for classes that started in January 2022, that amount paid could only be claimed in Tax Year 2021.

You need to look at the Student School Account Statement and match the payments to the year paid. 

If you can clarify what was actually PAID in 2022, what is reported in Box 1 and Box 5, and what the adjustment was for, we might be able to help you further. 

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 possibly your student has taxable scholarship income. 

If you claim the tuition credit, you do need to report that you got one or that you qualify for an exception (the TurboTax interview will handle this)

You claim the tuition credit, or report scholarship income, based on your own financial records, not the 1098-T. In the 1098-T screen, click on the link "What if this is not what I paid the school" underneath box 1. You will then be able to enter the actual amounts paid. You will also reach a screen that allows you to adjust the scholarship amount for "amounts not awarded for 2021 expenses".

Or if you find it easier, just change the numbers in boxes 1& 5 to what your records show. The 1098-T that you enter in TT is not sent to the IRS.