Can the information from the 1099-Q be offset from the 1098-T?

[KrisD]

Yes, in the TurboTax programs, the Taxpayer claiming the student enters the 1099-Q first, and then the 1098-T. If their is a credit, that person gets the credit. If there is taxable income that needs to be reported, the student reports scholarship income, and the person that was issued the 1099-Q reports any taxable distributions. 

Be aware that when you click "Maximize My Education Tax Break" the program may allocated expenses towards a credit and tax the distribution if the credit is worth more than the tax. You can change this by revisiting the "Education Information" interview on the "Here's Your education Summary" screen. On the last screen in that interview is the allocation to the credit which you can edit if desired. 

To get to the "Here's Your education Summary" screen, click Federal, Deductions & Credits, scroll down to "Education", click Edit next to the student's name, and continue through that interview first.