Deductions & credits

let me make this simpler: 

 

1) post the 1098T on YOUR tax return (from your response, I assume Box 1 is $20,000 and Box 5 is $10,000)

 

2) there is NO NEED to post the 1099Q in Turbo Tax. 

 

First, look at the instructions on form 1099Q.  It states: Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution.

 

Second, whose social security number is on that form.  THAT is who is responsible for determining whether any of it is taxable.

 

Third, Since your expenses (net of the scholarship) is $10,000 and your distribution from the 1099Q is $10,000, you have determined that none of the distribution is taxable. So put the 1099Q in a drawer with your documentation if the IRS ever comes calling.