Based on the numbers you provided, you are still eligible for the tuition credit, even though most of your expenses were paid by the 529 distribution. It only takes $4000 of net tuition to claim the American Opportunity Credit (AOC or AOTC). $22,000 - 15,500 = $6500 (more than $4000). This assumes there was no scholarship $ in box 5 of the 1098-T
You can still omit the 1099-Q. Enter the 1098-T, as is. TT will only use $4000 for the credit, not the full $11,800.
