If the student is your dependent, you should be entering the 1098-T and 1099-Q. If there is an education credit, you get the credit. If there is taxable income, the student reports taxable scholarships and the person listed on the 1099-Q reports the taxable distribution.
If the student is not a dependent, they enter the forms.
Yes, enter the Room and Board expense unless it is already included in Box 1 of the 1098-T.
If the amount paid for Room and Board is applied to the 529 distribution, the additional 10% penalty tax may be eliminated. This may be what happened to lower the tax due.
After you enter the 1099-Q, 1098-T, and any additional expenses, click "Maximize My credit" and the program will allocate the expenses efficiently.
