There's no point in entering the tuition. The only thing that really goes on your child's return is the taxable scholarship. So entering anything other than that amount when you type in the 1098-T is wasting time. The IRS doesn't see the worksheets or how you went through the Education section of Turbo Tax. It only sees the result- in his case, the result is $11k scholarship. Why spend all the time in the education section entering more than the taxable amount in Box 5? It will lead to more work for the same result. He cannot get an education credit or deduction.
Your return should be where you do the most work in the Education section, as you want to coordinate the tuition with the 529.
