Deductions & credits

I cleared this box as you suggested because already told TT this by indicating that much scholarship was used for room and board.  However, I tried other values there and it did not seem to make any difference.  But I'm glad to do it correctly.

I verified the line 8r in Schedule 1 has the full amount designated as taxable (i.e., was specified as being used for room and board) for both child returns.

You suggest that I go to the 1098T on the child returns enter 0 in box 1 and the taxable amount in box 5.  Currently the 1098T entries for each child on the child returns match the 1098T on my return.  Is making the edit you suggest on the child 1098T necessary since the line 8r Schedule 1 value is correct?  Again happy to do what ever is best practice.

You said

"I'm not sure what that means. Limits of what? What is "it"?  The only limit on making scholarship taxable, is the amount of the scholarship (unless the scholarship is partially or totally restricted). "

I meant the limit on how much of the scholarship could be made taxable.  Thanks for verifying.  This must seem obvious for someone versed in tax rules, but not so much for me.  Sorry for being obtuse. 

Thank you!