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Get your taxes done using TurboTax
Let's fix the reasons first:
1. Somebody else can claim him - go back through the personal profile and uncheck that box
2. Scholarships need to be applied to room and board -the scholarships clearly include room and board. Verify that you aren't using any restricted funds (required for tuition) towards room and board.
3. Let's shoot for the full $4k of credit and then you can adjust the numbers to find the sweet spot.
You have $8300 of qualified tuition and books, we need $4k. This leaves $4300 to be covered by scholarships.
Scholarships are 23,000 - $4300 to expenses = $18700 to room and board
You can see the full AOTC and move less money to room and board if you want to reduce the AOTC credit. You cannot claim the credit if your MAGI is over $90,000 ($180,000 for joint filers). It doesn't look like that is a problem here.
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