The 1099-Q $7716.99 goes to the room and board, tuck it away and do NOT enter it into the program.
This leaves the 1098-T $14,842.12 is grater than box 5 and there is no taxable scholarship income. While the education credit is available due to expenses, if you are unable to claim the credit, don't enter the 1098-T for either of you.
Both the 1099-Q and 1098 are informational forms which means they should only be filed when used.
If the entire 1099-Q went to qualified expenses, room and board, tuition, etc then you do not need to enter the form. Tuition paid for the first 3 months of the next year also qualify, see page 12, What Expenses Qualify, and page 52 for qualified distributions at IRS Publication 970, Tax Benefits for Education.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
