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https://www.irs.gov/help/ita/do-i-include-my-scholarship-fellowship-or-education-grant-as-income-on-my-tax-return
Yes, did you use the full scholarship for tuition? If so that scholarship is not taxable. You don’t have to report the amount of the scholarship as long as you used the scholarship to pay your tuition.
You only report the scholarship if it was used expenses other than tuition/fees. I would discuss it with a personal accountant but if it was me would not report it as income because it was used for tuition and if the IRS decided to request more information you will show them how much your tuition is and explain the situation as to why it was not reported on your 1098-t
I think the bigger question how does it affect the American Opportunity Credit or the Lifetime learning credit.