Get your taxes done using TurboTax

It is important to enter all the income, then the Form 1099-Q, and then the Expenses and Scholarships ( Form 1099-T) section. 

If it is entered out of order, the system may be reserving $10,000 in educational expenses toward an education credit, either American Opportunity Credit or Lifetime Learning Credit.  You may want to see if that leads to qualify for a credit, but if it does not, or if it will cause part of your 529 distribution to become taxable, then yes, it is fine to change that field to zero in the Education Information section of the screen below. This should free up those expenses to reconcile with the 529 distribution. 

If your school tuition was $26,570 and of that $4334 was a discount/scholarship, then that should be fine.   If the Box 1 number was already adjusted for the discount, then please check with the school and see if they will issue a corrected Form 1098-T.  You can file an extension in TurboTax that will give you until October 18th to file, although you should pay an estimate of any taxes owed when you file the extension. 

If room and board were paid from the 529 distribution, please go back through the Education Credit section and be sure those were entered.  That is not a qualifying expense for the Education credits but at least a portion can be used with 529 funds.