On entering the info on the student's return, if you're going to use the short cut (0 in box 1 and the calculated amount of reportable scholarship in box 5), you do not enter any other numbers. So, answer no when asked if there were any other scholarships.
That said, I suggest you review your calculations of the reportable amount with me before entering. Basically it goes like this:
Box 5 amount minus box 1 amount minus book expenses plus $4000 = tax reportable amount of scholarship. You add back the $4000 because the parents used that much to claim the credit (so it's no longer covered by tax free scholarship).
