Read the original answer above about the "loop hole". The 1098-T goes on your return, assuming he's your dependent. The 1099-Q goes on his return. When you son gets the screen "enter the amount that was used to calculate an education deduction or credit by the person who claimed you as a dependent.", he enters $4000 because that's the amount that gets you the maximum AOC.
He also has to increase the amount of scholarship he reports as tax able by $4000 (he reports the amount that exceeds the QEE + $4000)
