My previous comments assumed the parent was the recipient of the 1099-Q.
If the student was the 1099-Q recipient, there's enough room and board, that the 1099-Q does not need to be entered, even on the student's return.
That said, designating some of the 1099-Q to be taxable is more difficult, in this situation. In addition to entering numbers, you must complete the “Education Information” sub-section. In particular, be on the lookout for a screen “education expenses used for a tax credit” (or similar wording). It will usually be prepopulated (sometimes with $10K instead of the more appropriate $4K). You can change it for the amount you want to allocate to the ed credit ($4000). If you don't get that screen, check the student information worksheet. You can change it there (line 17). Make the change in the first column.
But, you should also enter room and board and books/computer at the other expenses section. Be sure the 1099-Q was entered before the 1098-T (you may have to delete both and start over).
