Thanks so much for your help! If it makes no difference, I would just keep 1098-T box 1 to be full amount and box 5 to be 4,325, since that way I can explain where the numbers comes from.
So in summary on my return in order to get education credit AOTC, we need to move part of the scholarship of 1098-T to my daughter return. In her return we had to enter negative amount in Less Common Income to zero out the 1099-NEC.
Thanks so much for your time and help!
