Yes, you are correct that the 10K adjustment is for a credit/deduction.
If your 1099-Q distribution was used for Qualified Education Expenses, you are not required to enter it in your return.
Click this link for more A Guide to 1099-Q.
Also, if you received a 1098-T and are not qualified for an Education Credit, you don't have to enter it in your return either.
It there is Excess Scholarship shown on your 1098-T the student can report the 1098-T in their return (if they are required to file a return).
[Edited 03/20/2020 | 7:24 PM]
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