if the qualified expenses EQUAL or EXCEED Box 1 of the 1099Q, he doesn't need to report it at all... just keep the documentation should you ever be audited. (presumably, since his social security number is on the form , the payment went straight to the college which is proof enough it was qualified expenses.)
Since you state you fon't quality for AOTC, reporting the 1098-T should not impact your tax return in any way.
