Thank you both for your feedback. I see the error in my thinking there. It looks like since my daughter is not eligible for any education deduction or credit because we claim her, that I should adjust the amount of her "qualified education expenses that are used to calculate deductions and credits". It appears that tt was applying her QEE to figure her credits instead of toward her 1099Q. The scholarship was not the problem. Since she is not eligible for any education credits, it does not make sense to apply those QEE toward those credits. I am I on the right path?
