Hello,
My situation is a bit confusing. At least for me. I'm a graduate student and during half of 2010, I received an stipend from the University and the university also paid for my tuitions, which I believe was considered as "scholarships". The other half of the year, I started receiving a scholarship from my country. This scholarship pays both my stipend and my tuitions. So on my 1098t,it says I've got 27,000 in scholarships or grants (box 5), but only 17,000 was qualified as tuition and related expenses (box 2). So I will have to pay tax of this $10,000 difference that never passed through my hands, but it is the money that my country paid for my tuitions. I don't think is fair for me to pay tax for that. What do you guys suggest? What if I file my taxes using 1040EZ and don't use this 1098t?
Thank you.

If you are a degree candidate and if the financial aid (includes scholarship and fellowship) is for tuition fee, other fees, books, supplies and equipment, then it is not taxable. For a degree candidate aid for boarding and travel are taxable. If you are not a degree candidate, then all the financial aid is taxable. Your U.S. Tax Return: The U.S. Income Tax Topics 1 (http://taxipay.blogspot.com/2008/08/us-income-tax-topics-1.html)

The taxable amount of scholarship is treated as self employed income. You must file tax return if income is $400 or more.
Which visa do you have? Your citizenship? When did you enter the US?