The 1098-T will report the amounts you paid for expenses that qualify for certain education deductions or credits. Usually the credits are a better result than the deductions. See Form 8863 or IRS Pub 970 for more detailed info.
I am in the same boat with my 1098 T. One question for you; I have an excess of scholarships that I was awarded. Can I still use the amount for qualified tuition and expenses for the Lifetime Learning Credit?