I would assume box 2 had 4200, and box 5 was 2500. And you entered anther scholarship of 1600. So that's 4100 in tax-free assistance and 4200 tuition expense, no taxable income to the student, credit on $100. IF YOU apply 1600 for room and board, that leaves 1600 taxable income for student and credit on $1,700. IF YOU apply 3900 to room and board, this leaves 3900 taxable income to the student and credit on $4,000, which means a 1500 off your tax liability and a $1000 refundable credit in the form of a refund. If you don't have at least 1500 in tax liability, claim less in Room and Board until you get just the right balance of taxable income to the student and a credit for you. It is a little confusing.
