Yes, you are not allowed to claim an educator expense and report a non-taxable QTP distribution. the good news is, you do not need to report a 1099Q. Publication 970 on page 45 states that "1099Q distributions are tax free if they aren't more than the beneficiary's Adjusted Qualified Educational Expenses (AQEE) for the year. Don't report tax-free distributions (including qualifying rollovers) on your tax return".
Since this distribution is $15,880 for your 21-yr old and the educational expenses are $30,416, this does not need to be reported per IRS guidelines. You can delete this entry from your return.
You can now claim your educator credit.
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