Why is box 1 of the 1098-T blank? Was no tuition paid in 2021?
The 1098-T is only an informational document. The numbers on it are not required to be entered onto your tax return.
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".
It's unlikely that he can pay NO tax and you claim AOTC. When credit qualifying expenses are totally paid by scholarship, the gimmick for the parent claiming the credit is for the student to pay tax on the scholarship.
To give you a clearer answer, your numbers on what was actually paid need to be clearer.
That said, based on what you've said, so far, he needs to declare $11,750 of scholarship as taxable income and you can use "around $2000" of expenses to claim the AOTC.
In TurboTax, for your return, enter the 1098-T. Then enter the book and computer expenses. When it asks if any of the scholarship was used for room and board, enter $11,750 to match box 5 (that frees up the $2000 for the credit). Note the wording at that screen “or other expenses”. He didn’t have to literally use the scholarship for R&B. This is just the entry needed to make it taxable.
On the student's return, just enter the 1098-T (blank box 1 and 11,750 in box 5). Don't enter any other numbers. Be aware, the "Kiddie tax" will kick in.
